Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 10, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2024 | |
Entity File Number | 001-12593 | |
Entity Registrant Name | ATN INTERNATIONAL, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-0728886 | |
Entity Address, Address Line One | 500 Cummings Center | |
Entity Address, Address Line Two | Suite 2450 | |
Entity Address, City or Town | Beverly | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01915 | |
City Area Code | 978 | |
Local Phone Number | 619-1300 | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | ATNI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 15,317,229 | |
Entity Central Index Key | 0000879585 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 56,467 | $ 49,225 |
Restricted cash | 12,751 | 12,942 |
Short-term investments | 300 | 300 |
Accounts receivable, net of allowances for credit losses of $16.9 million and $16.4 million, respectively | 138,456 | 138,616 |
Customer receivable | 7,506 | 7,249 |
Inventory, materials and supplies | 16,207 | 19,133 |
Prepayments and other current assets | 58,040 | 53,807 |
Total current assets | 289,727 | 281,272 |
Fixed Assets, net | 1,071,482 | 1,080,659 |
Telecommunication licenses, net | 113,319 | 113,319 |
Goodwill | 40,104 | 40,104 |
Intangible assets, net | 17,685 | 19,585 |
Operating lease right-of-use assets | 97,735 | 99,335 |
Customer receivable - long term | 45,165 | 45,676 |
Other assets | 103,937 | 103,764 |
Total assets | 1,779,154 | 1,783,714 |
Current Liabilities: | ||
Current portion of long-term debt | 20,476 | 24,290 |
Current portion of customer receivable credit facility | 7,569 | 7,110 |
Accounts payable and accrued liabilities | 161,418 | 182,069 |
Dividends payable | 3,757 | 3,701 |
Accrued taxes | 11,642 | 10,876 |
Current portion of lease liabilities | 15,674 | 15,164 |
Advance payments and deposits | 53,081 | 49,984 |
Total current liabilities | 273,617 | 293,194 |
Deferred income taxes | 18,123 | 19,775 |
Lease liabilities, excluding current portion | 74,856 | 76,936 |
Deferred revenue, long-term | 61,611 | 64,035 |
Other liabilities | 76,387 | 74,531 |
Customer receivable credit facility, net of current portion | 40,408 | 38,943 |
Long-term debt, excluding current portion | 520,815 | 492,580 |
Total liabilities | 1,065,817 | 1,059,994 |
Total redeemable noncontrolling interests | 84,621 | 85,917 |
ATN International, Inc. Stockholders' Equity: | ||
Preferred stock, $0.01 par value per share; 10,000,000 shares authorized, none issued and outstanding | ||
Common stock, $0.01 par value per share; 50,000,000 shares authorized; 17,845,445 and 17,702,476 shares issued, respectively, 15,501,510 and 15,421,481 shares outstanding, respectively | 173 | 173 |
Treasury stock, at cost; 2,343,935 and 2,280,995 shares, respectively | (92,463) | (90,447) |
Additional paid-in capital | 207,551 | 205,797 |
Retained earnings | 405,031 | 417,282 |
Accumulated other comprehensive income | 9,700 | 8,268 |
Total ATN International, Inc. stockholders' equity | 529,992 | 541,073 |
Noncontrolling interests | 98,724 | 96,730 |
Total equity | 628,716 | 637,803 |
Total liabilities, redeemable noncontrolling interests and equity | 1,779,154 | 1,783,714 |
Redeemable preferred units | ||
Current Liabilities: | ||
Total redeemable noncontrolling interests | 61,442 | 60,094 |
Redeemable common units | ||
Current Liabilities: | ||
Total redeemable noncontrolling interests | $ 23,179 | $ 25,823 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowances | $ 16.9 | $ 16.4 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 17,845,445 | 17,702,476 |
Common stock, shares outstanding | 15,501,510 | 15,421,481 |
Treasury stock, shares | 2,343,935 | 2,280,995 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
REVENUE: | ||
Total revenue | $ 186,794 | $ 185,774 |
OPERATING EXPENSES (excluding depreciation and amortization unless otherwise indicated): | ||
Selling, general and administrative | 61,315 | 61,348 |
Stock-based compensation | 1,909 | 1,778 |
Transaction-related charges | 19 | 13 |
Restructuring expenses | 1,190 | 2,887 |
Depreciation and amortization | 34,340 | 36,404 |
Amortization of intangibles from acquisitions | 1,980 | 3,247 |
Gain on disposition of assets | (493) | (167) |
Total operating expenses | 182,220 | 185,138 |
Income from operations | 4,574 | 636 |
OTHER INCOME (EXPENSE) | ||
Interest income | 445 | 182 |
Interest expense | (11,520) | (8,807) |
Other income | 172 | 194 |
Other (expense) | (10,903) | (8,431) |
LOSS BEFORE INCOME TAXES | (6,329) | (7,795) |
Income tax expense (benefit) | 1,619 | (740) |
NET LOSS | (7,948) | (7,055) |
Net loss attributable to noncontrolling interests, net of tax (benefit) expense of $0.3 million and $(0.6) million respectively | 1,633 | 1,170 |
NET LOSS ATTRIBUTABLE TO ATN INTERNATIONAL, INC. STOCKHOLDERS | $ (6,315) | $ (5,885) |
Basic (in dollars per share) | $ (0.50) | $ (0.44) |
Diluted (in dollars per share) | $ (0.50) | $ (0.44) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||
Basic (in shares) | 15,437 | 15,768 |
Diluted (in shares) | 15,437 | 15,768 |
DIVIDENDS PER SHARE APPLICABLE TO COMMON STOCK | $ 0.24 | $ 0.21 |
Communication services | ||
REVENUE: | ||
Total revenue | $ 181,268 | $ 181,308 |
OPERATING EXPENSES (excluding depreciation and amortization unless otherwise indicated): | ||
Cost of services | 80,390 | 79,040 |
Construction | ||
REVENUE: | ||
Total revenue | 1,586 | 590 |
OPERATING EXPENSES (excluding depreciation and amortization unless otherwise indicated): | ||
Cost of services | 1,570 | 588 |
Other | ||
REVENUE: | ||
Total revenue | $ 3,940 | $ 3,876 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Non-controlling interest, net of tax (benefit) expense | $ 0.3 | $ (0.6) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Net loss | $ (7,948) | $ (7,055) |
Other comprehensive income: | ||
Foreign currency translation adjustment net of tax expense of $0 and $0 million | 111 | |
Reclassification of loss on pension settlement, net of $0 and $0 million of tax | 369 | |
Unrealized gain on derivatives net of tax expense of $0.5 million and $0 | 1,432 | |
Other comprehensive income (loss), net of tax | 1,432 | 480 |
Comprehensive loss | (6,516) | (6,575) |
Less: Comprehensive (income) loss attributable to noncontrolling interests | 1,633 | 1,170 |
Comprehensive loss attributable to ATN International, Inc. | $ (4,883) | $ (5,405) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Foreign currency translation adjustment, tax expense | $ 0 | $ 0 |
Reclassification of loss on pension settlement, net of tax | 0 | 0 |
Unrealized gain on derivatives net of tax expense | $ 0.5 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total ATNI Stockholders' Equity | Common Stock | Treasury Stock, at cost | Additional Paid In Capital | Retained Earnings | Other Comprehensive Income/(Loss) | Non-Controlling Interests | Total |
Balance, beginning of period at Dec. 31, 2022 | $ 580,813 | $ 173 | $ (73,825) | $ 198,449 | $ 449,806 | $ 6,210 | $ 96,016 | $ 676,829 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Purchase of shares of common stock | (2,840) | (2,840) | (2,840) | |||||
Stock-based compensation | 1,634 | 1,634 | 144 | 1,778 | ||||
Dividends declared on common stock | (3,315) | (3,315) | (3,315) | |||||
Repurchase of non-controlling interests | (68) | (68) | (527) | (595) | ||||
Accrued dividend - redeemable preferred units | (1,045) | (1,045) | (1,045) | |||||
Deemed dividend - redeemable common units | (2,531) | (2,531) | 2,820 | 289 | ||||
Comprehensive income: | ||||||||
Net loss | (5,885) | (5,885) | (1,170) | (7,055) | ||||
Other comprehensive income (loss) | 480 | 480 | 480 | |||||
Total comprehensive income (loss) | (5,405) | (5,885) | 480 | (1,170) | (6,575) | |||
Balance, end of period at Mar. 31, 2023 | 567,243 | 173 | (76,665) | 200,015 | 437,030 | 6,690 | 97,283 | 664,526 |
Balance, beginning of period at Dec. 31, 2023 | 541,073 | 173 | (90,447) | 205,797 | 417,282 | 8,268 | 96,730 | 637,803 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Purchase of shares of common stock | (2,016) | (2,016) | (2,016) | |||||
Stock-based compensation | 1,754 | 1,754 | 155 | 1,909 | ||||
Dividends declared on common stock | (3,720) | (3,720) | (40) | (3,760) | ||||
Accrued dividend - redeemable preferred units | (1,348) | (1,348) | (1,348) | |||||
Deemed dividend - redeemable common units | (868) | (868) | 3,512 | 2,644 | ||||
Comprehensive income: | ||||||||
Net loss | (6,315) | (6,315) | (1,633) | (7,948) | ||||
Other comprehensive income (loss) | 1,432 | 1,432 | 1,432 | |||||
Total comprehensive income (loss) | (4,883) | (6,315) | 1,432 | (1,633) | (6,516) | |||
Balance, end of period at Mar. 31, 2024 | $ 529,992 | $ 173 | $ (92,463) | $ 207,551 | $ 405,031 | $ 9,700 | $ 98,724 | $ 628,716 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY | ||
Purchase of shares of common stock | 62,940 | 71,563 |
Dividends declared on common stock (in dollars per share) | $ 0.24 | $ 0.21 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (7,948) | $ (7,055) |
Adjustments to reconcile net loss to net cash flows provided by operating activities: | ||
Depreciation and amortization | 34,340 | 36,404 |
Amortization of intangibles from acquisitions | 1,980 | 3,247 |
Provision for doubtful accounts | 1,322 | 1,378 |
Amortization of debt discount and debt issuance costs | 625 | 569 |
Gain on disposition of assets and contingent consideration | (493) | (167) |
Stock-based compensation | 1,909 | 1,778 |
Deferred income taxes | (2,181) | (1,953) |
Loss on pension settlement | 369 | |
Gain on investments | (170) | (315) |
Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions: | ||
Accounts receivable | 2,183 | 3,573 |
Customer receivable | 254 | 745 |
Prepaid income taxes | 679 | |
Accrued taxes | 3,966 | 6,953 |
Materials and supplies, prepayments, and other current assets | (626) | (3,503) |
Accounts payable and accrued liabilities, advance payments and deposits and other current liabilities | (9,624) | (24,548) |
Other assets | 340 | 141 |
Other liabilities | (2,701) | (2,283) |
Net cash provided by operating activities | 23,176 | 16,012 |
Cash flows from investing activities: | ||
Capital expenditures | (36,016) | (50,598) |
Government capital programs - Amounts disbursed | (13,473) | (2,127) |
Government capital programs - Amounts received | 10,546 | 593 |
Purchases of strategic investments | (630) | |
Purchase of intangible assets | (573) | |
Purchase of investments - employee benefit plan | (25) | |
Proceeds from investments - employee benefit plan | 201 | |
Proceeds from sale of assets | 3,655 | |
Net cash used in investing activities | (35,685) | (52,762) |
Cash flows from financing activities: | ||
Dividends paid on common stock | (3,701) | (3,310) |
Payment of debt issuance costs | (72) | (119) |
Finance lease payments | (443) | (249) |
Term loan - repayments | (3,801) | (1,171) |
Revolving credit facility - borrowings | 46,000 | 57,553 |
Revolving credit facility - repayments | (18,302) | (14,000) |
Proceeds from customer receivable credit facility | 3,700 | 4,300 |
Repayment of customer receivable credit facility | (1,804) | (1,570) |
Purchases of common stock - stock- based compensation | (1,896) | (1,433) |
Purchases of common stock - share repurchase plan | (121) | (1,407) |
Repurchases of noncontrolling interests | (595) | |
Net cash provided by financing activities | 19,560 | 37,999 |
Net change in cash, cash equivalents, and restricted cash | 7,051 | 1,249 |
Total cash, cash equivalents, and restricted cash, beginning of period | 62,167 | 59,728 |
Total cash, cash equivalents, and restricted cash, end of period | 69,218 | 60,977 |
Supplemental cash flow information: | ||
Interest paid | 10,291 | 6,711 |
Taxes paid | 748 | 29 |
Dividends declared, not paid | 3,720 | 3,315 |
Noncash investing activity: | ||
Amounts accrued for reimbursable capital expenditures from government capital programs | 33,446 | 1,435 |
Amounts accrued for non-reimbursable capital expenditures | $ 14,032 | $ 14,773 |
ORGANIZATION AND BUSINESS OPERA
ORGANIZATION AND BUSINESS OPERATIONS | 3 Months Ended |
Mar. 31, 2024 | |
ORGANIZATION AND BUSINESS OPERATIONS | |
ORGANIZATION AND BUSINESS OPERATIONS | 1. ORGANIZATION AND BUSINESS OPERATIONS The Company is a leading provider of digital infrastructure and communications services with a focus on rural and remote markets in the United States, and internationally, including Bermuda and the Caribbean region. The Company has developed significant operational expertise and resources that it uses to augment its capabilities in its local markets. With this support, the Company’s operating subsidiaries are able to improve their quality of service with greater economies of scale and expertise than would typically be available in the size markets they operate in. The Company provides management, technical, financial, regulatory, and marketing services to its operating subsidiaries and typically receives a management fee calculated as a percentage of their revenues, which is eliminated in consolidation. The Company also actively evaluates investment opportunities and other strategic transactions, both domestic and international, and generally looks for those that it believes fit the Company’s profile of telecommunications businesses and have the potential to complement the Company’s “First-to-Fiber” and “Glass & Steel™” approach in markets while keeping a focus on generating excess operating cash flows over extended periods of time. The Company uses the cash generated from its operations to maintain an appropriate ratio of debt and cash on hand and to fund growth and capital expenditures, to return cash to its stockholders through dividends or stock repurchases, and make strategic investments or acquisitions. For further information about the Company’s financial segments and geographical information about its operating revenues and assets, see Notes 1 and 12 to the Consolidated Financial Statements included in this Report. As of March 31, 2024, the Company offered the following types of services to its customers: ● Mobile Telecommunications Services . The Company offers mobile communications services over its wireless networks and related equipment (such as handsets) to both business and consumer customers. ● Fixed Telecommunications Services . The Company provides fixed data and voice telecommunications services to business and consumer customers. These services include consumer broadband and high-speed data solutions for businesses. For some markets, fixed services also include video services and revenue derived from support under certain government programs. ● Carrier Telecommunication Services . The Company delivers services to other telecommunications providers including the leasing of critical network infrastructure such as tower and transport facilities, wholesale roaming and long distance voice services, site maintenance and international long-distance services. ● Managed Services . The Company provides information technology services such as network, application, infrastructure and hosting services to both its business and consumer customers to complement its fixed services in its existing markets. Through March 31, 2024, the Company identified two operating segments to manage and review its operations and to facilitate investor presentations of its results. These ● International Telecom. In the Company’s international markets, it offers fixed services, mobility services, carrier services and managed services to customers in Bermuda, the Cayman Islands, Guyana and the US Virgin Islands. ● US Telecom. In the United States, the Company offers fixed services, carrier services, and managed services to business customers and consumers in Alaska and the western United States. As of March 31, 2024 the Company provided mobility services to retail customers in the western United States. The following chart summarizes the operating activities of the Company’s principal subsidiaries, the segments in which it reports its revenue and the markets it served during the three months ended March 31, 2024: International Telecom US Telecom Services Markets Tradenames Services Markets Tradenames Mobility Services Bermuda, Guyana, US Virgin Islands One, GTT, Viya Mobility Services United States (rural markets) Choice, Choice NTUA Wireless Fixed Services Bermuda, Cayman Islands, Guyana, US Virgin Islands One, Logic, GTT, Viya Fixed Services United States Alaska Communications, Commnet, Choice, Choice NTUA Wireless, Sacred Wind Communications, Ethos, Deploycom Carrier Services Bermuda, Guyana, US Virgin Islands One, Essextel, GTT, Viya Carrier Services United States Alaska Communications, Commnet, Sacred Wind Communications Managed Services Bermuda, Cayman Islands, US Virgin Islands, Guyana Fireminds, One, Logic, GTT, Viya, Brava Managed Services United States Alaska Communications, Choice For further information about the Company’s financial segments and geographical information about its operating revenues and assets, see Note 12 to the Unaudited Condensed Consolidated Financial Statements included in this Report. Restructuring Expense In order to reduce the Company’s US Telecom and International Telecom segments’ cost structure, the Company has incurred, since the first quarter of 2023, certain network termination and reduction in force costs totaling $12.4 million through March 31, 2024. Of this amount, $1.2 million and $2.9 million were recorded during the three months ended March 31, 2024 and 2023, respectively. A summary of the costs, since the first quarter of 2023, is below (in thousands): US International Telecom Telecom Total Employee termination benefits $ 1,960 $ 4,681 $ 6,641 Contract termination costs 5,777 — 5,777 Total $ 7,737 $ 4,681 $ 12,418 The charge is recorded in Restructuring Expenses on the Company’s Consolidated Income Statements. During the three months ended March 31, 2024, the Company paid $2.0 million of the restructuring costs. In total, since the first quarter of 2023 and through March 31, 2024, the Company paid $7.7 million, recorded a gain of $0.3 million on lease termination, and $5.0 million of the restructuring costs remain accrued. In conjunction with the restructuring, the Company terminated certain leases and removed $5.6 million of lease right of use assets and $5.9 million of lease liabilities from its balance sheet. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2024 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 2. BASIS OF PRESENTATION The accompanying condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The financial information included herein is unaudited; however, the Company believes such information and the disclosures herein are adequate to make the information presented not misleading and reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the Company’s financial position and results of operations for the periods described therein. The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. Results of interim periods may not be indicative of results for the full year. These condensed consolidated financial statements and related notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 15, 2024. The condensed consolidated financial statements include the accounts of the Company, its subsidiaries in which the Company holds controlling interests and certain entities which are consolidated in accordance with the provisions of the Financial Accounting Standards Board’s (“FASB”) authoritative guidance on the consolidation of variable interest entities, since it is determined that the Company is the primary beneficiary of these entities. Recent Accounting Pronouncements In December 2023, the FASB released ASU 2023-09, titled "Enhancements to Income Tax Disclosures," with the aim of improving the clarity and usefulness of income tax disclosures. The update focuses primarily on enhancing disclosures related to rate reconciliation and income taxes paid. ASU 2023-09 becomes effective for annual reporting periods starting after December 15, 2024, with early adoption permitted. While the changes prescribed by ASU 2023-09 are implemented prospectively, retrospective application is also allowed. The Company has chosen not to early adopt this standard and is currently assessing its potential impact on our consolidated financial statements and accompanying disclosures. In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (ASU 2023-07), which requires that a public entity disclose, on an interim and annual basis, significant segment expense categories and amounts that are regularly provided to its chief operating decision maker (CODM) and included in each reported measure of segment profit or loss. An entity must also disclose, by reportable segment, the amount and composition of other expenses. The standard requires an entity to disclose the title and position of its CODM and explain how the CODM uses these reported measures in assessing segment performance and determining how to allocate resources. ASU 2023-07 will be effective for annual periods beginning after December 15, 2023, and interim periods beginning after December 31, 2024, with retrospective application. The standard allows early adoption of these requirements and we are currently evaluating the disclosure impacts of our adoption. |
REVENUE RECOGNITION AND RECEIVA
REVENUE RECOGNITION AND RECEIVABLES | 3 Months Ended |
Mar. 31, 2024 | |
REVENUE RECOGNITION AND RECEIVABLES | |
REVENUE RECOGNITION AND RECEIVABLES | 3. REVENUE RECOGNITION AND RECEIVABLES Revenue Accounted for in Accordance with Other Guidance The Company records revenue in accordance with ASC 606 from contracts with customers and ASC 842 from lease agreements, as well as government grants. Lease revenue recognized under ASC 842 is disclosed in Note 4 and government grant revenue is disclosed in Note 8. Timing of Revenue Recognition Revenue accounted for in accordance with ASC 606 consisted of the following for the periods presented below (in thousands): Three months ended March 31,2024 International US Telecom Telecom Total Services transferred over time $ 88,560 $ 78,043 $ 166,603 Goods and services transferred at a point in time 3,034 3,271 6,305 Total revenue accounted for under ASC 606 $ 91,594 $ 81,314 $ 172,908 Operating lease income 72 2,034 2,106 Government grant revenue (1) 1,393 10,387 11,780 Total revenue $ 93,059 $ 93,735 $ 186,794 Three months ended March 31,2023 International US Telecom Telecom Total Services transferred over time $ 85,680 $ 81,072 $ 166,752 Goods and services transferred at a point in time 3,259 2,546 5,805 Total revenue accounted for under ASC 606 $ 88,939 $ 83,618 $ 172,557 Operating lease income 72 1,831 1,903 Government grant revenue (1) 1,397 9,917 11,314 Total revenue $ 90,408 $ 95,366 $ 185,774 (1) Revenue recognized from CAF II, USF and RDOF programs. Refer to Note 8. Contract Assets and Liabilities The Company recognizes contract assets and liabilities on its balance sheet. Contract assets represent unbilled amounts typically resulting from consumer Mobility contracts with both a multiyear service period and a promotional discount. In these contracts, the revenue recognized exceeds the amount billed to the customer. The current portion of the contract asset is recorded in prepayments and other current assets and the noncurrent portion is included in other assets on the Company’s balance sheets. Contract liabilities consist of advance payments and billings in excess of revenue recognized. Mobility and Fixed revenue for postpaid customers is generally billed in advance and recognized over the period that the corresponding service is rendered to customers. To the extent the service is not provided by the reporting date the amount is recognized as a contract liability. Prepaid service, including Mobility services, sold to customers is recorded as deferred revenue prior to the commencement of services. Contract liabilities also include certain long term fixed business and carrier service customer contracts. The current portion of contract liabilities are recorded in advanced payments and deposits and the noncurrent portion is included in deferred revenue, long-term on the Company’s balance sheets. In July 2019, the Company entered into a Network Build and Maintenance Agreement with AT&T Mobility, LLC (“AT&T”) that was subsequently amended through March 31, 2024 (the “FirstNet Agreement”). In connection with the FirstNet Agreement, the Company is building a portion of AT&T’s network for the First Responder Network Authority in or near the Company’s current operating areas in the western United States (the “FirstNet Transaction”). The FirstNet Transaction includes construction and service performance obligations. The current portion of receivables under this agreement is recorded in customer receivable and the long-term portion is recorded in customer receivable long-term on the Company’s balance sheet. In May 2023, the Company amended its current roaming agreement and entered into a carrier management services agreement with Verizon Wireless (the “Verizon CMS Agreement”). The transaction includes service performance obligations under which revenue is recognized over time. The Company allocates the transaction price of these agreements to each performance obligation based on the relative standalone selling price of each performance obligation in the contract. The standalone selling price is the estimated price the Company would charge for the good or service in a separate transaction with similar customers in similar circumstances. Contract assets and liabilities consisted of the following (amounts in thousands): March 31, 2024 December 31, 2023 $ Change % Change Contract asset – current $ 3,469 $ 3,616 $ (147) (4.1) % Contract asset – noncurrent 5,490 5,509 (19) (0.3) % Contract liability – current (31,721) (30,990) (731) 2.4 % Contract liability – noncurrent (61,611) (64,035) 2,424 (3.8) % Net contract liability $ (84,373) $ (85,900) $ 1,527 (1.8) % The decrease in the Company’s net contract liability was due to the timing of customer prepayments, contract billings, and recognition of deferred revenue. During the three months ended March 31, 2024, the Company recognized revenue of Contract Acquisition Costs The March 31, 2024 and 2023 balance sheets include contract acquisition costs of $11.4 million and $9.0 million, respectively, in other assets. During the three months ended March 31, 2024 and 2023, the Company amortized Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to unsatisfied performance obligations of certain multiyear Mobility contracts, which include a promotional discount, Managed Services contracts, and the Company’s Carrier Services construction and service contracts. The transaction price allocated to unsatisfied performance obligations was million at March 31, 2024 and December 31, 2023, respectively. The decrease during 2024 was due to the Company satisfying certain performance obligations. The Company expects to satisfy approximately p p r o x i m a t e l million annually from 2026 through 2031. The Company has certain Mobility, Fixed, and Carrier Services contracts where the transaction price is allocated to remaining performance obligations. However, the Company omits these contracts from its disclosure by applying the right to invoice, Disaggregation The Company's revenue is presented on a disaggregated basis in Note 12 based on an evaluation of disclosures outside the financial statements, information regularly reviewed by the chief operating decision makers for evaluating the financial performance of operating segments and other information that is used for performance evaluation and resource allocations. This includes revenue from Communication Services, Construction, and Other revenue. Communication Services revenue is further disaggregated into business and consumer Mobility, business and consumer Fixed, Carrier Services, and Other services. Other revenue is further disaggregated into Managed Services revenue. Receivables The Company records an estimate of future credit losses in conjunction with the revenue transaction based on the information available including historical experience and management’s expectations of future conditions. Those estimates will be updated as additional information becomes available. The Company’s allowance for uncollectible accounts receivable is based on management’s assessment of the collectability of assets pooled together with similar risk characteristics. The Company had gross accounts receivable of $155.3 million and an allowance for credit losses of $16.9 million as of March 31, 2024. In addition, the Company had receivables under the FirstNet Agreement totaling million was long-term. At December 31, 2023, the Company had gross accounts receivable of million was long-term. The Company monitors receivables through the use of historical operating data adjusted for the expectation of future performance as appropriate. Three months ended March 31, 2024 March 31, 2023 Balance at beginning of period $ 16,362 $ 15,171 Current period provision for expected losses 1,322 1,378 Write-offs charged against the allowance (903) (591) Recoveries collected 83 74 Balance at end of period $ 16,864 $ 16,032 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2024 | |
LEASES | |
LEASES | 4. LEASES Lessee Disclosure The Company has operating and financing leases for towers, land, corporate offices, retail facilities, and data transport capacity. The lease terms three Supplemental lease information The components of lease expense were as follows (in thousands): Three months ended March 31, 2024 March 31, 2023 Operating lease cost: Operating lease cost $ 5,479 $ 5,981 Short-term lease cost 691 677 Variable lease cost 1,429 662 Total operating lease cost $ 7,599 $ 7,320 Finance lease cost: Amortization of right-of-use asset $ 612 $ 699 Variable costs 198 203 Interest costs 100 84 Total finance lease cost $ 910 $ 986 During the three months ended March 31, 2024 and 2023, the Company paid $4.8 million and $5.0 million, respectively, for operating lease liabilities. During the three months ended March 31, 2024 and 2023, the Company recorded $2.3 million and $2.9 million, respectively, of operating lease liabilities arising from right of use assets. During the three months ended March 31, 2023, in conjunction with the restructuring activities the Company terminated certain leases and removed $5.0 million of lease right of use assets and $5.3 million of lease liabilities from its balance sheet, resulting in the recording of a gain of $0.3 million in the restructuring expense line of its statement of operations. At March 31, 2024, finance leases with a cost of $31.7 million and accumulated amortization of $17.0 million were included in property, plant and equipment. During the three months ended March 31, 2024, the Company paid $0.4 million of financing cash flows and $0.1 million of operating cash flows for finance lease liabilities. During the three months ended March 31, 2023, the Company paid million of operating cash flows for finance lease liabilities. At March 31, 2024, finance leases had a lease liability of At December 31, 2023, finance leases with a cost of $31.7 million and accumulated amortization of $16.4 million were included in property, plant and equipment. The weighted average remaining lease terms and discount rates as of March 31, 2024 and December 31, 2023 are noted in the table below: March 31, 2024 December 31, 2023 Weighted-average remaining lease term Operating leases 12.9 years 13.3 years Financing leases 9.2 years 9.2 years Weighted-average discount rate Operating leases 6.6% 6.3% Financing leases 7.2% 6.6% Maturities of lease liabilities as of March 31, 2024 were as follows (in thousands): Operating Leases Financing Leases 2024 (excluding the three months ended March 31, 2024) $ 13,608 $ 1,614 2025 16,800 1,394 2026 12,405 570 2027 9,542 534 2028 7,553 505 Thereafter 82,078 2,145 Total lease payments 141,986 6,762 Less imputed interest (56,664) (1,555) Total $ 85,322 $ 5,207 Maturities of lease liabilities as of December 31, 2023 were as follows (in thousands): Operating Leases Financing Leases 2024 $ 18,048 $ 2,030 2025 16,022 1,488 2026 11,755 601 2027 9,327 534 2028 7,807 505 Thereafter 80,637 2,145 Total lease payments 143,596 7,303 Less imputed interest (57,133) (1,662) Total $ 86,463 $ 5,641 As of March 31, 2024, the Company did not have any material operating or finance leases that have not yet commenced. Lessor Disclosure The Company is the lessor in agreements to lease the use of its network assets including its wireless cell sites and buildings. For the three months ended March 31, 2024 and 2023, the Company recorded million, respectively, of lease income from agreements in which the Company is the lessor. Lease income is classified as Carrier Services revenue in the statement of operations. The following table presents the maturities of future undiscounted lease payments for the periods indicated (in thousands): 2024 (excluding the three months ended March 31, 2024) $ 5,995 2025 7,060 2026 6,749 2027 5,559 2028 5,180 Thereafter 13,353 Total future lease payments $ 43,896 |
USE OF ESTIMATES
USE OF ESTIMATES | 3 Months Ended |
Mar. 31, 2024 | |
USE OF ESTIMATES | |
USE OF ESTIMATES | 5. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The most significant estimates relate to the allowance for credit losses on trade receivables, useful lives of the Company’s fixed and finite-lived intangible assets, allocation of purchase price to assets acquired and liabilities assumed in business combinations, fair value of indefinite-lived intangible assets, goodwill and income taxes. Actual results could differ significantly from those estimates. |
FAIR VALUE MEASUREMENTS AND INV
FAIR VALUE MEASUREMENTS AND INVESTMENTS | 3 Months Ended |
Mar. 31, 2024 | |
FAIR VALUE MEASUREMENTS AND INVESTMENTS | |
FAIR VALUE MEASUREMENTS AND INVESTMENTS | 6. FAIR VALUE MEASUREMENTS AND INVESTMENTS In accordance with the provisions of fair value accounting, a fair value measurement assumes that a transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability, and defines fair value based upon an exit price model. The fair value measurement guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset and liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 assets and liabilities include money market funds, debt and equity securities and derivative contracts that are traded in an active exchange market. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes corporate obligations and non-exchange traded derivative contracts. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments and intangible assets that have been impaired whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Assets and liabilities of the Company measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 are summarized as follows (in thousands): March 31, 2024 Significant Other Quoted Prices in Unobservable Active Markets Inputs Description (Level 1) (Level 3) Total Short term investments $ 300 $ — $ 300 Other investments — 1,076 1,076 Employee benefit plan investments 2,991 — 2,991 Alaska Communications redeemable common units — (8,419) (8,419) Alloy redeemable common units — (14,760) (14,760) Warrants on Alaska Communications redeemable common units — (249) (249) Total assets and liabilities measured at fair value $ 3,291 $ (22,352) $ (19,061) December 31, 2023 Significant Other Quoted Prices in Unobservable Active Markets Inputs Description (Level 1) (Level 3) Total Short term investments $ 300 $ — $ 300 Other investments — 1,197 1,197 Employee benefit plan investments 3,014 — 3,014 Alaska Communications redeemable common units — (11,063) (11,063) Alloy redeemable common units — (14,760) (14,760) Warrants on Alaska Communications redeemable common units — (249) (249) Total assets and liabilities measured at fair value $ 3,314 $ (24,875) $ (21,561) Other Investments The Company holds investments in equity securities consisting of noncontrolling investments in privately held companies. The investments are accounted for using equity method accounting, the measurement alternative for investments without a readily determinable fair value, or fair value. The fair value investments are valued using Level 3 inputs and the Company used the income approach to fair value the investment. The inputs consisted of a discount rate and future cash flows calculated based on the investment attributes. Investments without a readily determinable fair value Fair value investments Equity method investments Total Balance, December 31, 2023 $ 41,710 $ 1,197 $ — $ 42,907 Income recognized — 19 — 19 Contributions / (distributions) — (140) — (140) Foreign currency gain — — — — Reclassification of foreign currency losses — — — — Transfers — — — — Balance, March 31, 2024 $ 41,710 $ 1,076 $ — $ 42,786 Balance, December 31, 2022 $ 22,590 $ 1,616 $ 13,963 $ 38,169 Income recognized — 77 238 315 Contributions / (distributions) — — 630 630 Foreign currency loss — — 111 111 Balance, March 31, 2023 $ 22,590 $ 1,693 $ 14,942 $ 39,225 During the year ended December 31, 2023, the Company lost the ability to exert significant influence over its India solar investment. As a result, the Company transferred These investments are included with other assets on the consolidated balance sheets. Redeemable Common Units and Warrants The Company has issued redeemable common units, and warrants to purchase additional common units, in consolidated subsidiaries of the Company. The instruments are redeemable at the option of the holder. Both the common units and warrants to purchase common units are recorded at fair value in the Company’s financial statements. The common units are recorded in redeemable noncontrolling interest and the warrants are recorded in other liabilities on the Company’s balance sheets. The put options for the Alloy redeemable common units begin in November 2026. The put options for the Alaska Communications redeemable common units begin the earlier of a public offering or July 2028. The Company calculates the fair value of the instruments using a combination of market and discounted cash flows approaches with Level 3 inputs. Other Fair Value Disclosures The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses approximate their fair values because of the relatively short-term maturities of these financial instruments. The fair value of long-term debt is estimated using Level 2 inputs. At March 31, 2024, the fair value of long-term debt, including the current portion, was $597.4 million and its book value was $589.3 million. At December 31, 2023, the fair value of long-term debt, including the current portion, was $571.6 million and its book value was $562.9 million. |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2024 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | 7. LONG-TERM DEBT 2023 CoBank Credit Facility On July 13, 2023, the Company, along with certain of its subsidiaries as guarantors, entered into a new Credit Agreement with CoBank, ACB and a syndicate of other lenders (as may be amended from time to time, the “2023 CoBank Credit Facility”). The 2023 CoBank Credit Facility provides for a five-year $170 million revolving credit facility (the “2023 CoBank Revolving Loan”) and a six-year $130 million term loan facility (the “2023 CoBank Term Loan”). The Company may use (i) up to $25 million under the 2023 CoBank Credit Facility for letters of credit, and (ii) up to $20 million under a swingline sub-facility. Upon the closing of the 2023 CoBank Credit Facility, the Company drew all of the 2023 CoBank Term Loan and approximately $13.6 million of the 2023 CoBank Revolving Loan. These borrowings were used to repay $139.5 million of debt outstanding under the 2019 CoBank Credit Facility at close. The 2023 CoBank Term Loan must be repaid in quarterly principal payments in the amounts set forth below, with the outstanding principal balance maturing on July 13, 2029. The 2023 CoBank Revolving Loan may be repaid at any time on or prior to its maturity on July 13, 2028. All amounts outstanding under the 2023 CoBank Credit Facility will be due and payable upon the earlier of the maturity date or the acceleration of the loans and commitments upon an event of default. 2023 CoBank Term Loan Quarterly Payment Dates 2023 CoBank Term Loan Quarterly Repayments December 31, 2023 – June 30, 2025 $812,500 (2.5% per annum) September 30, 2025 – June 30, 2026 $1,625,000 (5% per annum) September 30, 2026 – June 30, 2029 $2,437,500 (7.5% per annum) Amounts borrowed under the 2023 CoBank Credit Facility bear interest at a rate equal to, at the Company’s option, either (i) the secured overnight financing rate as administered by the Federal Reserve Bank of New York (SOFR) plus an applicable margin ranging between 2.00% to 3.75% for the 2023 CoBank Term Loan or 1.75% to 3.50% for Revolving Loans or (ii) a base rate plus an applicable margin ranging from 1.00% to 2.75% for the Term Loan or 0.75% to 2.50% for the 2023 CoBank Revolving Loans. Swingline loans will bear interest at the base rate plus the applicable margin for base rate loans. The base rate is equal to the higher of (i) 1.00% plus the one-month SOFR rate (ii) the federal funds effective rate (as defined in the 2023 CoBank Credit Agreement) plus 0.50% per annum; and (iii) the prime rate (as defined in the 2023 CoBank Credit Agreement). The applicable margin is determined based on the ratio (as further defined in the 2023 CoBank Credit Agreement) of the Company’s maximum Total Net Leverage Ratio. Under the terms of the 2023 CoBank Credit Agreement, the Company must also pay a fee ranging from 0.25% to 0.50% on the average daily unused portion of the 2023 CoBank Credit Facility over each calendar quarter. The 2023 CoBank Credit Agreement contains a financial covenant (as further defined in the 2023 CoBank Credit Agreement) that imposes a maximum Total Net Leverage Ratio, as well as customary representations, warranties and covenants, including covenants limiting additional indebtedness, liens, guaranties, mergers and consolidations, substantial asset sales, investments and loans, sale and leasebacks, transactions with affiliates and fundamental changes. The maximum Total Net Leverage Ratio is measured each fiscal quarter and is required to be less than or equal to The 2023 CoBank Credit Agreement provides for events of default customary for credit facilities of this type, including but not limited to non-payment, defaults on other debt, misrepresentation, breach of covenants, representations and warranties, insolvency and bankruptcy. The Company capitalized $4.2 million of fees associated with the 2023 CoBank Credit Facility which are being amortized over the life of the debt and $3.7 million were unamortized as of March 31, 2024. The Company had $128.4 million outstanding under the 2023 CoBank Term Loan as of March 31, 2024. Under the 2023 CoBank Revolving Loan, the Company had $60.8 million outstanding and $109.2 million of availability as of March 31, 2024. The Company was in compliance with all financial covenants as of March 31, 2024. In October 2023, the Company entered a two year , forward starting 1-month floating to fixed SOFR interest rate swap agreement. The swap was effective November 13, 2023 in a non-amortizing notional amount of 2019 CoBank Credit Facility On April 10, 2019, the Company entered into a credit facility, with CoBank, ACB and a syndicate of other lenders (as amended, the “2019 CoBank Credit Facility”). The 2019 CoBank Credit Facility provided for a million under a swingline sub-facility. In connection with the execution of the 2023 CoBank Credit Facility, as defined above, outstanding borrowings under the 2019 CoBank Credit Facility were repaid in full. Amounts borrowed under the 2019 CoBank Credit Facility bore interest at a rate equal to, at the Company’s option, either (i) the London Interbank Offered Rate (“LIBOR”) plus an applicable margin ranging between 1.25% to 2.25% or (ii) a base rate plus an applicable margin ranging from 0.25% to 1.25% . Swingline loans bore interest at the base rate plus the applicable margin for base rate loans. The base rate was equal to the higher of (i) Letter of Credit Facility On November 14, 2022, the Company entered into a General Agreement of Indemnity to issue performance Standby Letters of Credit on behalf of the Company and its subsidiaries. As of March 31, 2024, Alaska Credit Facility On July 22, 2021, Alaska Communications entered into a Credit Agreement (the “Alaska Credit Facility”) with Fifth Third Bank, National Association, as Administrative Agent, and a syndicate of lenders to provide a $35.0 million revolving facility (the “Alaska Revolving Facility”) and a $210.0 million initial term loan facility (the “Alaska Term Loan”). On December 23, 2022, Alaska Communications entered into a First Amendment Agreement (the “ACS Amendment”). The ACS Amendment amends the Alaska Credit Facility to increase its Revolving Credit Commitment from $35.0 million to $75.0 million and Term Loan Commitment from $210.0 million to $230.0 million. As a part of the transaction, the Term Loan commitment was fully funded as the outstanding Revolving Credit Commitment balance was transferred. As of March 31, 2024, Alaska Communications had drawn $40.0 million on its Revolving Credit Commitment and had $35.0 million available to draw. The Term Loan balance was In addition to the above changes, the ACS Amendment replaced the calculation of interest from an applicable margin applied to LIBOR with the same applicable margin applied to the Secured Overnight Financing Rate (“SOFR”) plus a 10-basis point adjustment. Alaska Communications capitalized $7.3 million of fees associated with the Alaska Credit Facility which are being amortized over the life of the debt and $3.5 million were unamortized as of March 31, 2024. The Alaska Credit Facility also provides for incremental facilities up to an aggregate principal amount of the greater of $70.0 million and Alaska Communications’ trailing twelve-month Consolidated EBITDA (as defined in the Alaska Credit Facility). The key terms and conditions of the Alaska Credit Facility include the following: ● Amounts outstanding bear an interest rate of the forward-looking SOFR rate with a one-month interest period, plus the SOFR Spread Adjustment of 10 basis points, plus a margin ranging from 3.00% to 4.00% based on Alaska Communications’ Consolidated Total Net Leverage Ratio (as defined in the Credit Agreement) or an alternate base rate may be selected at a margin that is 1% lower than the counterpart SOFR margin; ● Principal repayments are due quarterly and commenced in the fourth quarter of 2023 in amounts as follows: from the fourth quarter of 2023 through the third quarter of 2024, $1.4 million; and from the fourth quarter of 2024 through the third quarter of 2026, $2.9 million. The remaining unpaid balance is due on the final maturity date; ● Alaska Communications is required to maintain financial ratios as defined in the Alaska Credit Facility, including (a) a maximum Consolidated Net Total Leverage Ratio of 4.00 to 1, stepping down to 3.75 to 1 beginning with the second quarter of 2024; and (b) a minimum Consolidated Fixed Charge Coverage Ratio of not less than 1.25 to 1; and ● The Alaska Credit Facility is non-recourse to the Company and is secured by substantially all of the personal property and certain material real property owned by Alaska Communications. Alaska Communication’s interest rate swap, which had been designated as a cash flow hedge with an interest rate of 1.6735% , expired on June 30, 2022. In November 2023, Alaska Communications entered Alaska Term Facility On June 15, 2022, Alaska Communications Systems Holdings, the parent company of Alaska Communications, entered into a secured lending arrangement with Bristol Bay Industrial, LLC (the “Alaska Term Facility”). The Alaska Term Facility provided for a secured delayed draw term loan in an aggregate principal amount of up to $7.5 million and the proceeds were used to pay certain invoices from a contractor for work performed in connection with a fiber build. Interest on the Alaska Term Facility accrues at a fixed rate of 4.0% and scheduled quarterly payments of principal commenced on March 31, 2023. The Alaska Term Facility matures on June 30, 2024. The Alaska Term Facility contains events of default customary for facilities of this type. As of March 31, 2024, Alaska Communications Systems Holdings had $5.3 million outstanding and no available borrowings under the Alaska Term Facility. FirstNet Receivables Credit Facility On March 26, 2020, Commnet Finance, a wholly owned subsidiary of Commnet Wireless, entered into a receivables credit facility with the Company, Commnet Wireless, and CoBank, ACB (the “Receivables Credit Facility”). The Receivables Credit Facility provides for a senior secured delayed draw term loan in an aggregate principal amount of up to $75.0 million and the proceeds may be used to acquire certain receivables from Commnet Wireless. The receivables to be financed and sold under the Receivables Credit Facility, which provide the loan security, relate to the obligations of AT&T under the FirstNet Agreement. On December 19, 2023, CoBank amended the Receivables Credit Facility and extended the delayed draw period to December 31, 2024. The maturity date for each loan will be set by CoBank and will match the weighted average maturity of the certain receivables financed. Interest on the loans accrue at a fixed annual interest rate to be quoted by CoBank. The Receivables Credit Facility contains customary events of termination, representations and warranties, affirmative and negative covenants and events of default customary for facilities of this type. As of March 31, 2024, Commnet Wireless had $48.4 million outstanding, of which $7.6 million was current, and $11.3 million of availability under the Receivables Credit Facility. Commnet Wireless capitalized GTT Credit Facilities On October 12, 2022, GTT received approval from Republic Bank (Guyana) Limited for a $2.9 million term facility and a $5.7 million overdraft facility (the “GTT Credit Facilities”) subject to the approval from the Minister of Finance at the Bank of Guyana, which was received on March 31, 2023. The GTT Credit Facilities are secured by real estate assets and carry a fixed interest rate of 7.5% which will be reviewed by the bank from time to time and subject to change at the bank’s discretion. The term facility is repayable over five years in equal monthly installments of principal and interest, commencing one month after funds are advanced. The overdraft facility will expire on October 31, 2024. As of March 31, 2024, there were no outstanding amounts under the GTT Credit Facilities. Sacred Wind Term Debt In connection with the Sacred Wind acquisition completed on November 7, 2022, the Company assumed $31.6 million of term debt (the “Sacred Wind Term Debt”) with the United States of America acting through the Administrator of the Rural Utilities Service (“RUS”). The loan agreements are dated as of October 23, 2006 and March 17, 2016. RUS provides financial assistance in the form of loans under the Rural Electrification Act of 1936 to furnish or improve telecommunications and/or broadband services in rural areas. The Sacred Wind Term Debt is secured by substantially all assets of Sacred Wind and an underlying mortgage to the United States of America. These mortgage notes are to be repaid in equal monthly installments covering principal and interest beginning after date of issue and expiring by 2035. The Sacred Wind Term Debt contains certain restrictions on the declaration or payment of dividends, redemption of capital stock or investment in affiliated companies without the consent by the RUS noteholders. The agreements also contain a financial covenant which Sacred Wind was not in compliance with as of December 31, 2021. Sacred Wind submitted a corrective action plan to comply with the financial covenant as of December 31, 2025. On May 5, 2022, Sacred Wind’s corrective action plan was accepted by the RUS. As of March 31, 2024, Sacred Wind was in compliance with that corrective action plan. As of March 31, 2024, $27.4 million was outstanding under the Sacred Wind Term Debt. Of that amount, The mortgage notes carry fixed interest rates ranging from 0.88% to 5.0%. Viya Debt The Company, and certain of its subsidiaries, have entered into a $60.0 million loan agreement (the “Viya Debt”) with Rural Telephone Finance Cooperative (“RTFC”). The Viya Debt agreement contains customary representations, warranties, and affirmative and negative covenants (including limitations on additional debt, guaranties, sale of assets and liens) and a financial covenant that limits the maximum ratio of indebtedness to annual operating cash flow to to 1.0 (the “Net Leverage Ratio”). This covenant is tested on an annual basis at the end of each fiscal year. Interest is paid quarterly at a fixed rate of per annum and principal repayment is not required until maturity on July 1, 2026. Prepayment of the Viya Debt may be subject to a fee under certain circumstances. The debt is secured by certain assets of the Viya subsidiaries and is guaranteed by the Company. The Company paid a fee of $0.9 million in 2016 to lock the interest rate at 4% per annum over the term of the Viya Debt. The fee was recorded as a reduction to the Viya Debt carrying amount and is being amortized over the life of the loan. As of March 31, 2024, $60.0 million of the Viya Debt remained outstanding and $0.2 million of the rate lock fee was unamortized. On May 5, 2022, RTFC agreed to amend the Net Leverage Ratio to 7.0 to 1.0 through the maturity date of July 1, 2026. The Ratio is tested annually, and Viya was in compliance with the Net Leverage Ratio as of December 31, 2023 Debt Maturity The table below summarizes the annual maturities of the Company’s debt instruments (amounts in thousands). Customer US International Corporate and Total Receivable Amounts Maturing During Telecom Telecom Other Debt Credit Facility April 1, 2024 through December 31, 2024 $ 13,549 $ — $ 2,438 $ 15,987 $ 5,644 Year ending December 31, 2025 14,969 — 4,875 19,844 7,830 Year ending December 31, 2026 253,469 60,000 8,125 321,594 8,192 Year ending December 31, 2027 3,723 — 9,750 13,473 8,572 Year ending December 31, 2028 3,858 — 9,750 13,608 8,973 Thereafter 10,192 — 154,257 164,449 9,221 Total 299,760 60,000 189,195 548,955 48,432 Debt Discounts (3,764) (224) (3,676) (7,664) (455) Book Value as of March 31, 2024 $ 295,996 $ 59,776 $ 185,519 $ 541,291 $ 47,977 |
GOVERNMENT SUPPORT AND SPECTRUM
GOVERNMENT SUPPORT AND SPECTRUM MATTERS | 3 Months Ended |
Mar. 31, 2024 | |
GOVERNMENT SUPPORT AND SPECTRUM MATTERS | |
GOVERNMENT SUPPORT AND SPECTRUM MATTERS | 8. GOVERNMENT SUPPORT AND SPECTRUM MATTERS Universal Service Fund and Other Domestic Funding Programs The Company recognizes revenue from several government funded programs including the Universal Service Fund (“USF”), a subsidy program managed by the Federal Communications Commission (“FCC”), and the Alaska Universal Service Fund (“AUSF”), a similar program managed by the Regulatory Commission of Alaska (the “RCA”). USF funds are disbursed to telecommunication providers through four programs the High Cost Program; the Low Income Program (“Lifeline Program”); the Schools and Libraries Program (“E-Rate Program”); and the Rural Health Care Support Program (“RHC”). The Company’s International Telecom segment receives $5.5 million of legacy frozen high cost support funding in the US Virgin Islands. This funding expires on December 31, 2025. The Company also recognizes revenue from the Connect America Fund Phase II program (“CAF II”) which offers subsidies to carriers to expand broadband coverage in designated areas. Under CAF II, the Company’s US Telecom segment will receive an aggregate of $27.7 million annually through December 2025 and an aggregate of $8.0 million annually from January 2026 through July 2028. The Company also recognizes revenue from the FCC’s Affordable Connectivity Program (“ACP”) and the Emergency Connectivity Fund (“ECF”). The ACP provides eligible low-income consumers with a monthly subsidy for broadband connectivity and the ECF provides schools and libraries with subsidies for broadband connectivity. Funding under the ACP and ECF programs is set to expire in the second quarter of 2024. The Company was awarded approximately $22.7 million over 10 years to provide broadband and voice coverage to over 10,000 households in the United States (not including Alaska) under the 2020 Rural Digital Opportunity Fund Phase I Auction (“RDOF”). Revenue recognized from the RDOF program is recognized as revenue from government grants. All of the programs are subject to certain operational and reporting compliance requirements. The Company believes it is in compliance with these requirements as of March 31, 2024. Revenue recognized from the USF and CAF II programs is recognized as revenue from government grants. Revenue from other programs is recognized in accordance with ASC 606. The Company recorded the amounts below as communication services revenue for the reported periods (in thousands): Three months ended March 31, 2024 US Telecom International Telecom Total High cost support $ 3,455 $ 1,393 $ 4,848 CAF II 6,787 — 6,787 RDOF 145 — 145 ECF 6,813 — 6,813 RHC 3,437 — 3,437 Other 6,701 315 7,016 Total $ 27,338 $ 1,708 $ 29,046 Three months ended March 31, 2023 US Telecom International Telecom Total High cost support $ 2,494 $ 1,397 $ 3,891 CAF II 6,815 — 6,815 RDOF 608 — 608 ECF 8,067 — 8,067 RHC 2,900 — 2,900 Other 4,693 4 4,697 Total $ 25,577 $ 1,401 $ 26,978 Construction Grants The Company has also been awarded construction grants to build network connectivity for eligible communities. The funding of these grants, used to reimburse the Company for its construction costs, is generally distributed after the Company incurs reimbursable costs. Completion deadlines begin in 2024 and once these projects are constructed, the Company is obligated to provide service to the participants. The Company expects to meet all requirements associated with these grants. A roll forward of the Company’s grant awards is below (in thousands). Amount Grants awarded, December 31, 2023 $ 100,149 New grants — Construction complete — Grants awarded, March 31, 2024 $ 100,149 During the three months ended March 31, 2024, the Company disbursed capital expenditures of $3.4 million under these programs and received reimbursement of $1.9 million. These cash flows are classified as investing activities in the Company’s statement of cash flows. In addition, the Company partners with tribal governments to obtain grants under various government programs including the Tribal Broadband Connectivity Program (“TBCP”) and the Rural Development Broadband ReConnect Program (“ReConnect”). The TBCP and ReConnect programs are administered by United States government agencies to deploy broadband connectivity in certain underserved areas. The Company was identified as a sub recipient of grants under these programs totaling million on construction obligations. These amounts are recorded as operating cash flows in the company’s statement of cash flows. Replace and Remove Program On July 15, 2022, the Company was notified that it was an approved participant in the Federal Communication Commission’s Secure and Trusted Communications Networks Reimbursement Program (the “Replace and Remove Program”), designed to reimburse providers of communications services for reasonable costs incurred in the required removal, replacement, and disposal of covered communications equipment or services, that have been deemed to pose a national security risk, from their networks. Pursuant to the Replace and Remove Program, the Company was allocated up to approximately $207 million in reimbursement amounts to cover documented and approved costs to remove and securely destroy all ZTE communications equipment and services in its U.S. networks and replace such equipment. The Replace and Remove Program requires that the Company complete the project no later than one year from submitting its initial reimbursement request, or by July 2024. In April 2024, the FCC granted the Company’s request to extend the program’s completion deadlines to the first quarter of 2025. At this time, the Company anticipates that it will be able to meet the deadlines and requirements of the program. A summary of the amounts spent and reimbursed under the Replace and Remove Program is below (in thousands): Capital Operating Total Total spend, December 31, 2023 $ 49,262 $ 15,126 $ 64,388 Amounts spent 11,734 4,568 16,302 Total spend, March 31, 2024 $ 60,996 $ 19,694 $ 80,690 Total reimbursements, December 31, 2023 $ (12,773) $ (4,354) $ (17,127) Reimbursements received (8,586) (5,843) (14,429) Total reimbursements, March 31, 2024 $ (21,359) $ (10,197) $ (31,556) Amount pending reimbursement $ 39,637 $ 9,497 $ 49,134 Capital Operating Total Total spend, December 31, 2022 $ 1,836 $ 1,489 $ 3,325 Amounts spent 1,485 1,900 3,385 Total spend, March 31, 2023 $ 3,321 $ 3,389 $ 6,710 Amount pending reimbursement $ 3,321 $ 3,389 $ 6,710 At March 31, 2024, $33.4 million of the capital expenditures were accrued and unpaid. The Company expects to be reimbursed for all amounts spent within the next . Amounts identified as capital are recorded as investing cash flows and amounts identified as operating are recorded as operating cash flows in the Company’s statement of cash flows. |
RETIREMENT PLANS
RETIREMENT PLANS | 3 Months Ended |
Mar. 31, 2024 | |
RETIREMENT PLANS | |
RETIREMENT PLANS | 9. RETIREMENT PLANS Multi-employer Defined Benefit Plan Pension benefits for substantially all of the Company’s Alaska-based employees are provided through the Alaska Electrical Pension Fund (“AEPF”). The Company pays a contractual hourly amount based on employee classification or base compensation to the AEPF. As a multi-employer defined benefit plan, the accumulated benefits and plan assets are not determined for, or allocated separately to, the individual employer. This plan was not in endangered or critical status during the plan year. Defined Benefit Plan The Company has noncontributory defined benefit pension and noncontributory defined medical, dental, vision, and life benefit plans for eligible employees who meet certain eligibility criteria. The majority of benefits under the plans are frozen and the plans no longer allow new participants to join. The Company recorded the net periodic benefit cost identified below (in thousands): Three months ended March 31, 2024 March 31, 2023 Pension benefits Postretirement benefits Pension benefits Postretirement benefits Operating expense Service cost $ 22 $ 16 $ 38 $ 31 Non-operating expense Interest cost 824 45 593 35 Expected return on plan assets (729) — (953) — Amortization of unrecognized actuarial gain (11) (28) — — Settlements — — 369 — Net periodic pension expense (benefit) $ 106 $ 33 $ 47 $ 66 The Company was not required to make contributions to its pension plans during the three months ended March 31, 2024 and 2023. However, the Company periodically evaluates whether to make discretionary contributions. The Company funds its postretirement benefit plans as claims are made and did not make contributions to its pension plans during the three months ended March 31, 2024 and 2023. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
INCOME TAXES | |
INCOME TAXES | 10. INCOME TAXES The Company’s effective tax rate for the three months ended March 31, 2024 and 2023 was (25.6%) and 9.5%, respectively. The Company recorded an income tax expense of $1.6 million in relation to a pretax loss of $6.3 million for the three months ended March 31, 2024. The effective tax rate for the three months ended March 31, 2024 was primarily impacted by the following items: (i) the mix of income generated among the jurisdictions in which the Company operates, (ii) net expense related to valuation allowances placed on certain deferred tax assets that are not expected to be realizable based on the weight of positive and negative evidence, (iii) forecasted tax impact of global intangible low-taxed income (“GILTI”) inclusion, and (iv) discrete items including expense of The Company recorded an income tax benefit of $0.7 million in relation to a pretax loss of $7.8 million for the three months ended March 31, 2023. The effective tax rate for the three months ended March 31, 2023 was primarily impacted by the following items: (i) the mix of income generated among the jurisdictions in which the Company operates, (ii) a net increase related to valuation allowances placed on certain deferred tax assets and (iii) discrete items including The Company’s effective tax rate is based upon estimated income before provision for income taxes for the year, composition of the income in different countries, and adjustments, if any, in the applicable quarterly periods for potential tax consequences, benefits and/or resolutions of tax contingencies. The Company’s consolidated tax rate will continue to be impacted by any transactional or one-time items in the future and the mix of income in any given year generated among the jurisdictions in which the Company operates. While the Company believes it has adequately provided for all tax positions, amounts asserted by taxing authorities could materially differ from the Company’s accrued positions as a result of uncertain and complex applications of tax law and regulations. Additionally, the recognition and measurement of certain tax benefits include estimates and judgments by management. Accordingly, the Company could record additional provisions or benefits for US federal, state, and foreign tax matters in future periods as new information becomes available. |
EARNINGS PER SHARE AND REDEEMAB
EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS | 3 Months Ended |
Mar. 31, 2024 | |
EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS | |
EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS | 11. EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS Earnings Per Share The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share (in thousands): Three months ended March 31, 2024 2023 Numerator: Net loss attributable to ATN International, Inc. stockholders- Basic (6,315) (5,885) Less: Preferred dividends (1,348) (1,045) Net Loss attributable to ATN International, Inc. common stockholders- Diluted $ (7,663) $ (6,930) Denominator: Weighted-average shares outstanding- Basic 15,437 15,768 Weighted-average shares outstanding- Diluted 15,437 15,768 Redeemable Noncontrolling Interests In connection with certain acquisitions, the Company accounts for third-party non-controlling minority investments as redeemable noncontrolling interests, which consist of both redeemable common and, in some instances, preferred units, in its consolidated financial statements. The common units contain put options allowing the holder to sell at a future date, the common units to a subsidiary of the Company at the then fair market value. The common units participate in the earnings and losses of the subsidiaries and are allocated their applicable share of earnings and losses. After the allocation of earnings and losses, the Company estimates the fair value of the common units and adjusts the book value of the common units to that estimated fair value. The preferred units contain put options allowing the holder to sell at a future date, the preferred units to a subsidiary of the Company at a fixed price equal to face value of the units plus unpaid dividends. The preferred units hold a distribution preference over common units and carry a fixed dividend rate. The put options for both the common and preferred units, if any, are nonrecourse to the Company and exercisable at the earlier of a future initial public offering of the subsidiary or certain dates beginning in 2026. For the three months ended March 31, 2024 and 2023, the Company allocated losses of $3.5 million and $2.8 million, respectively, to the redeemable common units representing their proportionate share of operating losses. The Company then compared the book value of the common units to the fair value and the fair value exceeded the book value. As a result, the book value was increased by $0.9 million and $2.5 million during the three months ended March 31, 2024 and 2023, respectively. The following table provides a roll forward of the activity related to the Company’s redeemable noncontrolling interests for the three months ended March 31, 2024 and 2023 (in thousands): Redeemable Preferred Units Redeemable Common Units Total Redeemable Noncontrolling Interests Balance, December 31, 2023 $ 60,094 $ 25,823 $ 85,917 Accrued preferred dividend 1,348 — 1,348 Allocated net loss — (3,512) (3,512) Change in fair value — 868 868 Balance, March 31, 2024 $ 61,442 $ 23,179 $ 84,621 Redeemable Preferred Units Redeemable Common Units Total Redeemable Noncontrolling Interests Balance, December 31, 2022 $ 55,152 $ 37,317 $ 92,469 Accrued preferred dividend 1,045 — 1,045 Allocated net loss — (2,821) (2,821) Change in fair value — 2,530 2,530 Balance, March 31, 2023 $ 56,197 $ 37,026 $ 93,223 |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2024 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | 12. SEGMENT REPORTING The Company has the following two reportable and operating segments: i) International Telecom and ii) US Telecom. The following tables provide information for each operating segment (in thousands): For the Three Months Ended March 31, 2024 International US Corporate and Telecom Telecom Other (1) Consolidated Revenue Communication Services Mobility - Business $ 4,808 $ 74 $ — $ 4,882 Mobility - Consumer 21,229 764 — 21,993 Total Mobility 26,037 838 — 26,875 Fixed - Business 18,532 34,965 — 53,497 Fixed - Consumer 42,789 22,919 — 65,708 Total Fixed 61,321 57,884 — 119,205 Carrier Services 3,574 30,052 — 33,626 Other 818 744 — 1,562 Total Communication Services Revenue 91,750 89,518 — 181,268 Construction — 1,586 — 1,586 Other Managed Services 1,309 2,631 — 3,940 Total other revenue 1,309 2,631 — 3,940 Total Revenue 93,059 93,735 — 186,794 Depreciation and amortization 16,124 18,138 78 34,340 Amortization of intangibles from acquisitions 251 1,729 — 1,980 Non-cash stock-based compensation 23 132 1,754 1,909 Operating income (loss) 11,685 597 (7,708) 4,574 For the Three Months Ended March 31, 2023 International US Corporate and Telecom Telecom Other (1) Consolidated Revenue Communication Services Mobility - Business $ 3,575 $ 172 $ — $ 3,747 Mobility - Consumer 22,532 987 — 23,519 Total Mobility 26,107 1,159 — 27,266 Fixed - Business 17,113 36,320 — 53,433 Fixed - Consumer 41,778 22,582 — 64,360 Total Fixed 58,891 58,902 — 117,793 Carrier Services 3,690 32,084 — 35,774 Other 400 75 — 475 Total Communication Services Revenue 89,088 92,220 — 181,308 Construction — 590 — 590 Other Managed Services 1,320 2,556 — 3,876 Total Other Revenue 1,320 2,556 — 3,876 Total Revenue 90,408 95,366 — 185,774 Depreciation 14,186 21,487 731 36,404 Amortization of intangibles from acquisitions 380 2,867 — 3,247 Non-cash stock-based compensation 67 77 1,634 1,778 Operating income (loss) 13,825 (4,342) (8,847) 636 Selected balance sheet data for each of the Company’s segments as of March 31, 2024 and December 31, 2023 consists of the following (in thousands): International US Corporate and Telecom Telecom Other Consolidated March 31, 2024 Cash, cash equivalents, and restricted cash $ 35,369 $ 32,288 $ 1,561 $ 69,218 Total current assets 121,262 157,318 11,147 289,727 Fixed assets, net 479,325 585,979 6,178 1,071,482 Goodwill 4,835 35,269 — 40,104 Total assets 679,591 1,006,960 92,603 1,779,154 Total current liabilities 87,986 155,274 30,357 273,617 Total debt, including current portion 59,776 295,996 185,519 541,291 December 31, 2023 Cash, cash equivalents, and restricted cash $ 26,354 $ 33,574 $ 2,239 $ 62,167 Total current assets 107,469 162,768 11,035 281,272 Fixed assets, net 481,911 593,833 4,915 1,080,659 Goodwill 4,836 35,268 — 40,104 Total assets 672,171 1,019,924 91,619 1,783,714 Total current liabilities 86,540 169,297 37,357 293,194 Total debt, including current portion 64,254 293,607 159,009 516,870 For the three months ended March 31, 2024 and 2023, the Company spent $49.5 million and $52.7 million, respectively, on capital expenditures relating to its telecommunications networks and business support systems of which $13.5 million and $2.1 million, respectively, are reimbursable under various government programs. The following notes the Company’s capital expenditures, by operating segment, for these periods (in thousands). Capital Expenditures International US Corporate and Three months ended March 31, Telecom Telecom Other (1) Consolidated 2024 $ 16,915 $ 31,233 $ 1,341 $ 49,489 2023 21,464 31,261 — 52,725 (1) Corporate and other items refer to corporate overhead costs and consolidating adjustments |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 13. COMMITMENTS AND CONTINGENCIES Regulatory and Litigation Matters The Company and its subsidiaries are subject to certain regulatory and legal proceedings and other claims arising in the ordinary course of business, some of which involve claims for damages and taxes that are substantial in amount. Historically, the Company’s subsidiary, GTT, has been subject to other long-standing litigation proceedings and disputes in Guyana that have not yet been resolved. The Company believes that, except for the items discussed below, for which the Company is currently unable to predict the final outcome, the disposition of matters currently pending will not have a material adverse effect on the Company’s financial position or results of operations. Beginning in 2006, the National Frequency Management Unit (now the Telecommunications Agency, or the “NFMU/TA”) and GTT have been engaged in discussions regarding the amount of and methodology for calculation of spectrum fees payable by GTT in Guyana. Since that time, GTT has made payments of undisputed spectrum fees as amounts invoiced by the NFMU, and to its successor, the Telecommunications Authority (“TA”). There have been limited further discussions on the subject of a revised spectrum fee methodology with the TA. GTT has filed several lawsuits in the High Court of Guyana asserting that, despite its denials, Digicel is engaged in international bypass in violation of GTT’s exclusive license rights, the interconnection agreement between the parties, and the laws of Guyana. Digicel filed counterclaims alleging that GTT has violated the terms of the interconnection agreement and Guyana laws. These suits, filed in 2010 and 2012, are currently pending in the Court of Appeals in Guyana, however, the Company cannot accurately predict at this time when the consolidated suit will reach a court of final determination. GTT is also involved in several legal claims regarding its tax filings with the Guyana Revenue Authority (the “GRA”) dating back to 1991 regarding the deductibility of intercompany advisory fees as well as other tax assessments. GTT has maintained that it has no unpaid corporation tax due to the GRA and that any liability GTT might be found to have with respect to the disputed tax assessments would be offset in part by the amounts claimed with respect to rights ATN has pursuant to its agreement with the government of Guyana. GTT’s position has been upheld by various High Court rulings made in its favor including most recently in December 2021, and while some matters have been appealed by the GRA, other matters remain pending for determination by the High Court. In February 2020, the Company’s Alaska Communications subsidiary received a draft audit report from USAC in connection with USAC’s inquiry into Alaska Communications’ funding requests under the Rural Health Care Support Program for certain customers for the time period of July 2012 through June 2017. Alaska Communications also received a Letter of Inquiry on March 18, 2018, and subsequent follow up information requests, from the FCC Enforcement Bureau requesting historical information regarding Alaska Communications’ participation in the FCC’s Rural Health Care Support Program. On May 8, 2024, we entered into a Consent Decree with the FCC Enforcement Bureau, regarding both the USAC and FCC Enforcement Bureau’s investigation and agreed to (i) pay a settlement amount of approximately $6.3 million, and (ii) enter into a three-year compliance agreement in connection with Alaska Communication’s continued participation in the RHC Program. At this time, we believe that we can comply with all of the terms of the compliance agreement. The settlement amount of $6.3 million consists of a $5.3 million cash payment and the $1.0 million forgiveness of certain receivables, both of which have been accrued on the Company’s balance sheet as of March 31, 2024. As such, this settlement will not impact the statement of operations in future periods. With respect to all of the foregoing matters, the Company believes that some adverse outcome is probable and has accordingly accrued $17.0 million as of March 31, 2024 for these and other potential liabilities arising in various claims, legal actions and regulatory proceedings arising in the ordinary course of business. The Company also faces contingencies that are reasonably possible to occur that cannot currently be estimated. It is the Company’s policy to expense costs associated with loss contingencies, including any related legal fees, as they are incurred. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2024 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 14. SUBSEQUENT EVENTS On May 8, 2024, the Company entered into a Consent Decree with the FCC Enforcement Bureau, regarding both the USAC and FCC Enforcement Bureau’s investigation and agreed to (i) a settlement amount of approximately $6.3 million, and (ii) enter into a three-year compliance agreement in connection with Alaska Communication’s continued participation in the RHC Program. At this time, we believe that we can comply with all of the terms of the compliance agreement. The settlement amount of $6.3 million consists of a $5.3 million cash payment and the $1.0 million forgiveness of certain receivables, both of which have been accrued on the Company’s balance sheet as of March 31, 2024. As such, this settlement will not impact the statement of operations in future periods. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PRESENTATION | The accompanying condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The financial information included herein is unaudited; however, the Company believes such information and the disclosures herein are adequate to make the information presented not misleading and reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the Company’s financial position and results of operations for the periods described therein. The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. Results of interim periods may not be indicative of results for the full year. These condensed consolidated financial statements and related notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 15, 2024. The condensed consolidated financial statements include the accounts of the Company, its subsidiaries in which the Company holds controlling interests and certain entities which are consolidated in accordance with the provisions of the Financial Accounting Standards Board’s (“FASB”) authoritative guidance on the consolidation of variable interest entities, since it is determined that the Company is the primary beneficiary of these entities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2023, the FASB released ASU 2023-09, titled "Enhancements to Income Tax Disclosures," with the aim of improving the clarity and usefulness of income tax disclosures. The update focuses primarily on enhancing disclosures related to rate reconciliation and income taxes paid. ASU 2023-09 becomes effective for annual reporting periods starting after December 15, 2024, with early adoption permitted. While the changes prescribed by ASU 2023-09 are implemented prospectively, retrospective application is also allowed. The Company has chosen not to early adopt this standard and is currently assessing its potential impact on our consolidated financial statements and accompanying disclosures. In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (ASU 2023-07), which requires that a public entity disclose, on an interim and annual basis, significant segment expense categories and amounts that are regularly provided to its chief operating decision maker (CODM) and included in each reported measure of segment profit or loss. An entity must also disclose, by reportable segment, the amount and composition of other expenses. The standard requires an entity to disclose the title and position of its CODM and explain how the CODM uses these reported measures in assessing segment performance and determining how to allocate resources. ASU 2023-07 will be effective for annual periods beginning after December 15, 2023, and interim periods beginning after December 31, 2024, with retrospective application. The standard allows early adoption of these requirements and we are currently evaluating the disclosure impacts of our adoption. |
ORGANIZATION AND BUSINESS OPE_2
ORGANIZATION AND BUSINESS OPERATIONS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
ORGANIZATION AND BUSINESS OPERATIONS | |
Schedule of the operating activities of the Company's principal subsidiaries, the segments in which the Company reports its revenue and markets served | The following chart summarizes the operating activities of the Company’s principal subsidiaries, the segments in which it reports its revenue and the markets it served during the three months ended March 31, 2024: International Telecom US Telecom Services Markets Tradenames Services Markets Tradenames Mobility Services Bermuda, Guyana, US Virgin Islands One, GTT, Viya Mobility Services United States (rural markets) Choice, Choice NTUA Wireless Fixed Services Bermuda, Cayman Islands, Guyana, US Virgin Islands One, Logic, GTT, Viya Fixed Services United States Alaska Communications, Commnet, Choice, Choice NTUA Wireless, Sacred Wind Communications, Ethos, Deploycom Carrier Services Bermuda, Guyana, US Virgin Islands One, Essextel, GTT, Viya Carrier Services United States Alaska Communications, Commnet, Sacred Wind Communications Managed Services Bermuda, Cayman Islands, US Virgin Islands, Guyana Fireminds, One, Logic, GTT, Viya, Brava Managed Services United States Alaska Communications, Choice |
Schedule of restructuring expenses | A summary of the costs, since the first quarter of 2023, is below (in thousands): US International Telecom Telecom Total Employee termination benefits $ 1,960 $ 4,681 $ 6,641 Contract termination costs 5,777 — 5,777 Total $ 7,737 $ 4,681 $ 12,418 |
REVENUE RECOGNITION AND RECEI_2
REVENUE RECOGNITION AND RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
REVENUE RECOGNITION AND RECEIVABLES | |
Summary of revenues | Revenue accounted for in accordance with ASC 606 consisted of the following for the periods presented below (in thousands): Three months ended March 31,2024 International US Telecom Telecom Total Services transferred over time $ 88,560 $ 78,043 $ 166,603 Goods and services transferred at a point in time 3,034 3,271 6,305 Total revenue accounted for under ASC 606 $ 91,594 $ 81,314 $ 172,908 Operating lease income 72 2,034 2,106 Government grant revenue (1) 1,393 10,387 11,780 Total revenue $ 93,059 $ 93,735 $ 186,794 Three months ended March 31,2023 International US Telecom Telecom Total Services transferred over time $ 85,680 $ 81,072 $ 166,752 Goods and services transferred at a point in time 3,259 2,546 5,805 Total revenue accounted for under ASC 606 $ 88,939 $ 83,618 $ 172,557 Operating lease income 72 1,831 1,903 Government grant revenue (1) 1,397 9,917 11,314 Total revenue $ 90,408 $ 95,366 $ 185,774 (1) Revenue recognized from CAF II, USF and RDOF programs. Refer to Note 8. |
Summary of contracts asset and liabilities | Contract assets and liabilities consisted of the following (amounts in thousands): March 31, 2024 December 31, 2023 $ Change % Change Contract asset – current $ 3,469 $ 3,616 $ (147) (4.1) % Contract asset – noncurrent 5,490 5,509 (19) (0.3) % Contract liability – current (31,721) (30,990) (731) 2.4 % Contract liability – noncurrent (61,611) (64,035) 2,424 (3.8) % Net contract liability $ (84,373) $ (85,900) $ 1,527 (1.8) % |
Schedule of activity in allowances for credit losses | Activity in the allowance for credit losses is below (in thousands): Three months ended March 31, 2024 March 31, 2023 Balance at beginning of period $ 16,362 $ 15,171 Current period provision for expected losses 1,322 1,378 Write-offs charged against the allowance (903) (591) Recoveries collected 83 74 Balance at end of period $ 16,864 $ 16,032 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
LEASES | |
Summary of components of lease expense | The components of lease expense were as follows (in thousands): Three months ended March 31, 2024 March 31, 2023 Operating lease cost: Operating lease cost $ 5,479 $ 5,981 Short-term lease cost 691 677 Variable lease cost 1,429 662 Total operating lease cost $ 7,599 $ 7,320 Finance lease cost: Amortization of right-of-use asset $ 612 $ 699 Variable costs 198 203 Interest costs 100 84 Total finance lease cost $ 910 $ 986 |
Summary of weighted-average remaining lease term and discount rate | March 31, 2024 December 31, 2023 Weighted-average remaining lease term Operating leases 12.9 years 13.3 years Financing leases 9.2 years 9.2 years Weighted-average discount rate Operating leases 6.6% 6.3% Financing leases 7.2% 6.6% |
Summary of maturities of operating lease liabilities | Maturities of lease liabilities as of March 31, 2024 were as follows (in thousands): Operating Leases Financing Leases 2024 (excluding the three months ended March 31, 2024) $ 13,608 $ 1,614 2025 16,800 1,394 2026 12,405 570 2027 9,542 534 2028 7,553 505 Thereafter 82,078 2,145 Total lease payments 141,986 6,762 Less imputed interest (56,664) (1,555) Total $ 85,322 $ 5,207 Maturities of lease liabilities as of December 31, 2023 were as follows (in thousands): Operating Leases Financing Leases 2024 $ 18,048 $ 2,030 2025 16,022 1,488 2026 11,755 601 2027 9,327 534 2028 7,807 505 Thereafter 80,637 2,145 Total lease payments 143,596 7,303 Less imputed interest (57,133) (1,662) Total $ 86,463 $ 5,641 |
Summary of maturities of finance lease liabilities | Operating Leases Financing Leases 2024 (excluding the three months ended March 31, 2024) $ 13,608 $ 1,614 2025 16,800 1,394 2026 12,405 570 2027 9,542 534 2028 7,553 505 Thereafter 82,078 2,145 Total lease payments 141,986 6,762 Less imputed interest (56,664) (1,555) Total $ 85,322 $ 5,207 Operating Leases Financing Leases 2024 $ 18,048 $ 2,030 2025 16,022 1,488 2026 11,755 601 2027 9,327 534 2028 7,807 505 Thereafter 80,637 2,145 Total lease payments 143,596 7,303 Less imputed interest (57,133) (1,662) Total $ 86,463 $ 5,641 |
Schedule of maturities of future undiscounted lease payments | The following table presents the maturities of future undiscounted lease payments for the periods indicated (in thousands): 2024 (excluding the three months ended March 31, 2024) $ 5,995 2025 7,060 2026 6,749 2027 5,559 2028 5,180 Thereafter 13,353 Total future lease payments $ 43,896 |
FAIR VALUE MEASUREMENTS AND I_2
FAIR VALUE MEASUREMENTS AND INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
FAIR VALUE MEASUREMENTS AND INVESTMENTS | |
Schedule of assets and liabilities of the entity measured at fair value on a recurring basis | Assets and liabilities of the Company measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 are summarized as follows (in thousands): March 31, 2024 Significant Other Quoted Prices in Unobservable Active Markets Inputs Description (Level 1) (Level 3) Total Short term investments $ 300 $ — $ 300 Other investments — 1,076 1,076 Employee benefit plan investments 2,991 — 2,991 Alaska Communications redeemable common units — (8,419) (8,419) Alloy redeemable common units — (14,760) (14,760) Warrants on Alaska Communications redeemable common units — (249) (249) Total assets and liabilities measured at fair value $ 3,291 $ (22,352) $ (19,061) December 31, 2023 Significant Other Quoted Prices in Unobservable Active Markets Inputs Description (Level 1) (Level 3) Total Short term investments $ 300 $ — $ 300 Other investments — 1,197 1,197 Employee benefit plan investments 3,014 — 3,014 Alaska Communications redeemable common units — (11,063) (11,063) Alloy redeemable common units — (14,760) (14,760) Warrants on Alaska Communications redeemable common units — (249) (249) Total assets and liabilities measured at fair value $ 3,314 $ (24,875) $ (21,561) |
Schedule of investments | A roll forward of the investments is below (in thousands) Investments without a readily determinable fair value Fair value investments Equity method investments Total Balance, December 31, 2023 $ 41,710 $ 1,197 $ — $ 42,907 Income recognized — 19 — 19 Contributions / (distributions) — (140) — (140) Foreign currency gain — — — — Reclassification of foreign currency losses — — — — Transfers — — — — Balance, March 31, 2024 $ 41,710 $ 1,076 $ — $ 42,786 Balance, December 31, 2022 $ 22,590 $ 1,616 $ 13,963 $ 38,169 Income recognized — 77 238 315 Contributions / (distributions) — — 630 630 Foreign currency loss — — 111 111 Balance, March 31, 2023 $ 22,590 $ 1,693 $ 14,942 $ 39,225 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
LONG-TERM DEBT | |
Schedule of quarterly repayments | 2023 CoBank Term Loan Quarterly Payment Dates 2023 CoBank Term Loan Quarterly Repayments December 31, 2023 – June 30, 2025 $812,500 (2.5% per annum) September 30, 2025 – June 30, 2026 $1,625,000 (5% per annum) September 30, 2026 – June 30, 2029 $2,437,500 (7.5% per annum) |
Schedule of future principal repayments annual maturities of the Company's debt instruments | The table below summarizes the annual maturities of the Company’s debt instruments (amounts in thousands). Customer US International Corporate and Total Receivable Amounts Maturing During Telecom Telecom Other Debt Credit Facility April 1, 2024 through December 31, 2024 $ 13,549 $ — $ 2,438 $ 15,987 $ 5,644 Year ending December 31, 2025 14,969 — 4,875 19,844 7,830 Year ending December 31, 2026 253,469 60,000 8,125 321,594 8,192 Year ending December 31, 2027 3,723 — 9,750 13,473 8,572 Year ending December 31, 2028 3,858 — 9,750 13,608 8,973 Thereafter 10,192 — 154,257 164,449 9,221 Total 299,760 60,000 189,195 548,955 48,432 Debt Discounts (3,764) (224) (3,676) (7,664) (455) Book Value as of March 31, 2024 $ 295,996 $ 59,776 $ 185,519 $ 541,291 $ 47,977 |
GOVERNMENT SUPPORT AND SPECTR_2
GOVERNMENT SUPPORT AND SPECTRUM MATTERS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Disaggregation of Revenue [Line Items] | |
Summary of revenues | Revenue accounted for in accordance with ASC 606 consisted of the following for the periods presented below (in thousands): Three months ended March 31,2024 International US Telecom Telecom Total Services transferred over time $ 88,560 $ 78,043 $ 166,603 Goods and services transferred at a point in time 3,034 3,271 6,305 Total revenue accounted for under ASC 606 $ 91,594 $ 81,314 $ 172,908 Operating lease income 72 2,034 2,106 Government grant revenue (1) 1,393 10,387 11,780 Total revenue $ 93,059 $ 93,735 $ 186,794 Three months ended March 31,2023 International US Telecom Telecom Total Services transferred over time $ 85,680 $ 81,072 $ 166,752 Goods and services transferred at a point in time 3,259 2,546 5,805 Total revenue accounted for under ASC 606 $ 88,939 $ 83,618 $ 172,557 Operating lease income 72 1,831 1,903 Government grant revenue (1) 1,397 9,917 11,314 Total revenue $ 90,408 $ 95,366 $ 185,774 (1) Revenue recognized from CAF II, USF and RDOF programs. Refer to Note 8. |
Network Connectivity for Eligible Communities | |
Disaggregation of Revenue [Line Items] | |
Schedule of grant funds | The Company has also been awarded construction grants to build network connectivity for eligible communities. The funding of these grants, used to reimburse the Company for its construction costs, is generally distributed after the Company incurs reimbursable costs. Completion deadlines begin in 2024 and once these projects are constructed, the Company is obligated to provide service to the participants. The Company expects to meet all requirements associated with these grants. A roll forward of the Company’s grant awards is below (in thousands). Amount Grants awarded, December 31, 2023 $ 100,149 New grants — Construction complete — Grants awarded, March 31, 2024 $ 100,149 |
Remove And Replace Program | |
Disaggregation of Revenue [Line Items] | |
Schedule of grant funds | A summary of the amounts spent and reimbursed under the Replace and Remove Program is below (in thousands): Capital Operating Total Total spend, December 31, 2023 $ 49,262 $ 15,126 $ 64,388 Amounts spent 11,734 4,568 16,302 Total spend, March 31, 2024 $ 60,996 $ 19,694 $ 80,690 Total reimbursements, December 31, 2023 $ (12,773) $ (4,354) $ (17,127) Reimbursements received (8,586) (5,843) (14,429) Total reimbursements, March 31, 2024 $ (21,359) $ (10,197) $ (31,556) Amount pending reimbursement $ 39,637 $ 9,497 $ 49,134 Capital Operating Total Total spend, December 31, 2022 $ 1,836 $ 1,489 $ 3,325 Amounts spent 1,485 1,900 3,385 Total spend, March 31, 2023 $ 3,321 $ 3,389 $ 6,710 Amount pending reimbursement $ 3,321 $ 3,389 $ 6,710 |
Communication services | |
Disaggregation of Revenue [Line Items] | |
Summary of revenues | The Company recorded the amounts below as communication services revenue for the reported periods (in thousands): Three months ended March 31, 2024 US Telecom International Telecom Total High cost support $ 3,455 $ 1,393 $ 4,848 CAF II 6,787 — 6,787 RDOF 145 — 145 ECF 6,813 — 6,813 RHC 3,437 — 3,437 Other 6,701 315 7,016 Total $ 27,338 $ 1,708 $ 29,046 Three months ended March 31, 2023 US Telecom International Telecom Total High cost support $ 2,494 $ 1,397 $ 3,891 CAF II 6,815 — 6,815 RDOF 608 — 608 ECF 8,067 — 8,067 RHC 2,900 — 2,900 Other 4,693 4 4,697 Total $ 25,577 $ 1,401 $ 26,978 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
RETIREMENT PLANS | |
Schedule of components of the plan's net periodic pension cost | The Company recorded the net periodic benefit cost identified below (in thousands): Three months ended March 31, 2024 March 31, 2023 Pension benefits Postretirement benefits Pension benefits Postretirement benefits Operating expense Service cost $ 22 $ 16 $ 38 $ 31 Non-operating expense Interest cost 824 45 593 35 Expected return on plan assets (729) — (953) — Amortization of unrecognized actuarial gain (11) (28) — — Settlements — — 369 — Net periodic pension expense (benefit) $ 106 $ 33 $ 47 $ 66 |
EARNINGS PER SHARE AND REDEEM_2
EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS | |
Schedule of computation of basic and diluted earnings per share | The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share (in thousands): Three months ended March 31, 2024 2023 Numerator: Net loss attributable to ATN International, Inc. stockholders- Basic (6,315) (5,885) Less: Preferred dividends (1,348) (1,045) Net Loss attributable to ATN International, Inc. common stockholders- Diluted $ (7,663) $ (6,930) Denominator: Weighted-average shares outstanding- Basic 15,437 15,768 Weighted-average shares outstanding- Diluted 15,437 15,768 |
Schedule of rollforward activity related to the Company's redeemable noncontrolling interests | The following table provides a roll forward of the activity related to the Company’s redeemable noncontrolling interests for the three months ended March 31, 2024 and 2023 (in thousands): Redeemable Preferred Units Redeemable Common Units Total Redeemable Noncontrolling Interests Balance, December 31, 2023 $ 60,094 $ 25,823 $ 85,917 Accrued preferred dividend 1,348 — 1,348 Allocated net loss — (3,512) (3,512) Change in fair value — 868 868 Balance, March 31, 2024 $ 61,442 $ 23,179 $ 84,621 Redeemable Preferred Units Redeemable Common Units Total Redeemable Noncontrolling Interests Balance, December 31, 2022 $ 55,152 $ 37,317 $ 92,469 Accrued preferred dividend 1,045 — 1,045 Allocated net loss — (2,821) (2,821) Change in fair value — 2,530 2,530 Balance, March 31, 2023 $ 56,197 $ 37,026 $ 93,223 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
SEGMENT REPORTING | |
Schedule of information for each operating segment | The following tables provide information for each operating segment (in thousands): For the Three Months Ended March 31, 2024 International US Corporate and Telecom Telecom Other (1) Consolidated Revenue Communication Services Mobility - Business $ 4,808 $ 74 $ — $ 4,882 Mobility - Consumer 21,229 764 — 21,993 Total Mobility 26,037 838 — 26,875 Fixed - Business 18,532 34,965 — 53,497 Fixed - Consumer 42,789 22,919 — 65,708 Total Fixed 61,321 57,884 — 119,205 Carrier Services 3,574 30,052 — 33,626 Other 818 744 — 1,562 Total Communication Services Revenue 91,750 89,518 — 181,268 Construction — 1,586 — 1,586 Other Managed Services 1,309 2,631 — 3,940 Total other revenue 1,309 2,631 — 3,940 Total Revenue 93,059 93,735 — 186,794 Depreciation and amortization 16,124 18,138 78 34,340 Amortization of intangibles from acquisitions 251 1,729 — 1,980 Non-cash stock-based compensation 23 132 1,754 1,909 Operating income (loss) 11,685 597 (7,708) 4,574 For the Three Months Ended March 31, 2023 International US Corporate and Telecom Telecom Other (1) Consolidated Revenue Communication Services Mobility - Business $ 3,575 $ 172 $ — $ 3,747 Mobility - Consumer 22,532 987 — 23,519 Total Mobility 26,107 1,159 — 27,266 Fixed - Business 17,113 36,320 — 53,433 Fixed - Consumer 41,778 22,582 — 64,360 Total Fixed 58,891 58,902 — 117,793 Carrier Services 3,690 32,084 — 35,774 Other 400 75 — 475 Total Communication Services Revenue 89,088 92,220 — 181,308 Construction — 590 — 590 Other Managed Services 1,320 2,556 — 3,876 Total Other Revenue 1,320 2,556 — 3,876 Total Revenue 90,408 95,366 — 185,774 Depreciation 14,186 21,487 731 36,404 Amortization of intangibles from acquisitions 380 2,867 — 3,247 Non-cash stock-based compensation 67 77 1,634 1,778 Operating income (loss) 13,825 (4,342) (8,847) 636 |
Schedule of selected balance sheet data for each segment | Selected balance sheet data for each of the Company’s segments as of March 31, 2024 and December 31, 2023 consists of the following (in thousands): International US Corporate and Telecom Telecom Other Consolidated March 31, 2024 Cash, cash equivalents, and restricted cash $ 35,369 $ 32,288 $ 1,561 $ 69,218 Total current assets 121,262 157,318 11,147 289,727 Fixed assets, net 479,325 585,979 6,178 1,071,482 Goodwill 4,835 35,269 — 40,104 Total assets 679,591 1,006,960 92,603 1,779,154 Total current liabilities 87,986 155,274 30,357 273,617 Total debt, including current portion 59,776 295,996 185,519 541,291 December 31, 2023 Cash, cash equivalents, and restricted cash $ 26,354 $ 33,574 $ 2,239 $ 62,167 Total current assets 107,469 162,768 11,035 281,272 Fixed assets, net 481,911 593,833 4,915 1,080,659 Goodwill 4,836 35,268 — 40,104 Total assets 672,171 1,019,924 91,619 1,783,714 Total current liabilities 86,540 169,297 37,357 293,194 Total debt, including current portion 64,254 293,607 159,009 516,870 |
Schedule of segment capital expenditures | The following notes the Company’s capital expenditures, by operating segment, for these periods (in thousands). Capital Expenditures International US Corporate and Three months ended March 31, Telecom Telecom Other (1) Consolidated 2024 $ 16,915 $ 31,233 $ 1,341 $ 49,489 2023 21,464 31,261 — 52,725 (1) Corporate and other items refer to corporate overhead costs and consolidating adjustments |
ORGANIZATION AND BUSINESS OPE_3
ORGANIZATION AND BUSINESS OPERATIONS (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
ORGANIZATION AND BUSINESS OPERATIONS | |
Number of operating segments | 2 |
ORGANIZATION AND BUSINESS OPE_4
ORGANIZATION AND BUSINESS OPERATIONS - Restructuring Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 15 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | |
Restructuring Expense | |||
Restructuring charge | $ 1,190 | $ 2,887 | $ 12,418 |
Employee termination benefits | 6,641 | ||
Contract termination costs | 5,777 | ||
Restructure costs paid | 2,000 | ||
Total restructure costs paid | 7,700 | ||
Gain on lease termination | 300 | 300 | |
Restructuring costs remain accrued | 5,000 | 5,000 | |
Right of use assets terminated | 5,600 | 5,000 | 5,600 |
Lease liabilities terminated | $ 5,900 | $ 5,300 | 5,900 |
US Telecom | |||
Restructuring Expense | |||
Restructuring charge | 7,737 | ||
Employee termination benefits | 1,960 | ||
Contract termination costs | 5,777 | ||
International Telecom | |||
Restructuring Expense | |||
Restructuring charge | 4,681 | ||
Employee termination benefits | $ 4,681 |
REVENUE RECOGNITION AND RECEI_3
REVENUE RECOGNITION AND RECEIVABLES - Timing of Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
REVENUE RECOGNITION AND RECEIVABLES | ||
Total revenue | $ 172,908 | $ 172,557 |
Operating lease income | 2,106 | 1,903 |
Government grant revenue | 11,780 | 11,314 |
Total revenue | 186,794 | 185,774 |
Services transferred over time | ||
REVENUE RECOGNITION AND RECEIVABLES | ||
Total revenue | 166,603 | 166,752 |
Goods and services transferred at a point in time | ||
REVENUE RECOGNITION AND RECEIVABLES | ||
Total revenue | 6,305 | 5,805 |
International Telecom | ||
REVENUE RECOGNITION AND RECEIVABLES | ||
Total revenue | 91,594 | 88,939 |
Operating lease income | 72 | 72 |
Government grant revenue | 1,393 | 1,397 |
Total revenue | 93,059 | 90,408 |
International Telecom | Services transferred over time | ||
REVENUE RECOGNITION AND RECEIVABLES | ||
Total revenue | 88,560 | 85,680 |
International Telecom | Goods and services transferred at a point in time | ||
REVENUE RECOGNITION AND RECEIVABLES | ||
Total revenue | 3,034 | 3,259 |
US Telecom | ||
REVENUE RECOGNITION AND RECEIVABLES | ||
Total revenue | 81,314 | 83,618 |
Operating lease income | 2,034 | 1,831 |
Government grant revenue | 10,387 | 9,917 |
Total revenue | 93,735 | 95,366 |
US Telecom | Services transferred over time | ||
REVENUE RECOGNITION AND RECEIVABLES | ||
Total revenue | 78,043 | 81,072 |
US Telecom | Goods and services transferred at a point in time | ||
REVENUE RECOGNITION AND RECEIVABLES | ||
Total revenue | $ 3,271 | $ 2,546 |
REVENUE RECOGNITION AND RECEI_4
REVENUE RECOGNITION AND RECEIVABLES - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Contract Assets and Liabilities | ||
Retail revenue period for billing postpaid customers in advance | 1 month | |
Contract Asset - current | $ 3,469 | $ 3,616 |
Change in contract asset - current | $ (147) | |
% of change in contract asset - current | (4.10%) | |
Contract Asset - noncurrent | $ 5,490 | 5,509 |
Change in contract asset - noncurrent | $ (19) | |
% of change in contract asset - noncurrent | (0.30%) | |
Contract liability- current | $ (31,721) | (30,990) |
Change in contract liabilities - current | $ (731) | |
% of change in contract liabilities - current | 2.40% | |
Contract liability- noncurrent | $ (61,611) | (64,035) |
Change in contract liabilities - noncurrent | $ 2,424 | |
% of change in contract liabilities - Noncurrent | (3.80%) | |
Net contract liability | $ (84,373) | $ (85,900) |
Change in net contract liability | $ 1,527 | |
% of change in net contract liability | (1.80%) | |
Revenue recognized related to contract liability | $ 16,800 | |
Amortization of contract assets | $ 1,300 |
REVENUE RECOGNITION AND RECEI_5
REVENUE RECOGNITION AND RECEIVABLES - Contract Acquisition Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Contract Acquisition Costs | ||
Amortization of contract acquisition cost | $ 1.6 | $ 1.1 |
Other Assets | ||
Contract Acquisition Costs | ||
Short-term contract acquisition costs | $ 11.4 | $ 9 |
REVENUE RECOGNITION AND RECEI_6
REVENUE RECOGNITION AND RECEIVABLES - Remaining Performance Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Revenue Recognition | ||
Transaction price allocated to unsatisfied performance obligations | $ 494 | |
Revenue, Practical Expedient, Financing Component [true false] | false | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | ||
Revenue Recognition | ||
Transaction price allocated to unsatisfied performance obligations | $ 463 | |
Percentage of performance obligations to be satisfied | 34% | |
Period to satisfy the remaining performance obligations and recognize the transaction price | 24 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | ||
Revenue Recognition | ||
Transaction price allocated to unsatisfied performance obligations | $ 50 | |
Period to satisfy the remaining performance obligations and recognize the transaction price | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | ||
Revenue Recognition | ||
Transaction price allocated to unsatisfied performance obligations | $ 50 | |
Period to satisfy the remaining performance obligations and recognize the transaction price | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | ||
Revenue Recognition | ||
Transaction price allocated to unsatisfied performance obligations | $ 50 | |
Period to satisfy the remaining performance obligations and recognize the transaction price | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | ||
Revenue Recognition | ||
Transaction price allocated to unsatisfied performance obligations | $ 50 | |
Period to satisfy the remaining performance obligations and recognize the transaction price | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2030-01-01 | ||
Revenue Recognition | ||
Transaction price allocated to unsatisfied performance obligations | $ 50 | |
Period to satisfy the remaining performance obligations and recognize the transaction price | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2031-01-01 | ||
Revenue Recognition | ||
Transaction price allocated to unsatisfied performance obligations | $ 50 | |
Period to satisfy the remaining performance obligations and recognize the transaction price | 12 months |
REVENUE RECOGNITION AND RECEI_7
REVENUE RECOGNITION AND RECEIVABLES - Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts Receivable | ||
Gross accounts receivable | $ 155,300 | $ 155,000 |
Customer receivable - long term | 45,165 | 45,676 |
Allowance for credit loss | 16,900 | 16,400 |
FirstNet agreement | ||
Accounts Receivable | ||
Customer receivable | 52,700 | 52,900 |
Customer receivable - long term | $ 45,200 | $ 45,700 |
REVENUE RECOGNITION AND RECEI_8
REVENUE RECOGNITION AND RECEIVABLES - Allowance for Credit Losses Roll forward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
REVENUE RECOGNITION AND RECEIVABLES | ||
Balance at beginning of period | $ 16,362 | $ 15,171 |
Current period provision for expected losses | 1,322 | 1,378 |
Write-offs charged against the allowance | (903) | (591) |
Recoveries collected | 83 | 74 |
Balance at end of period | $ 16,864 | $ 16,032 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Mar. 31, 2024 |
Minimum | |
LEASES | |
Operating lease, lease term | 3 years |
Finance lease, lease term | 3 years |
Maximum | |
LEASES | |
Operating lease, lease term | 10 years |
Finance lease, lease term | 10 years |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense and Payments (Details) - USD ($) $ in Thousands | 3 Months Ended | 15 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
LEASES | ||||
Operating lease cost | $ 5,479 | $ 5,981 | ||
Short-term lease cost | 691 | 677 | ||
Variable lease cost | 1,429 | 662 | ||
Total operating lease cost | 7,599 | 7,320 | ||
Finance lease cost: | ||||
Amortization of right-of-use asset | 612 | 699 | ||
Variable costs | 198 | 203 | ||
Interest costs | 100 | 84 | ||
Total finance lease cost | 910 | 986 | ||
Payments for lease liabilities | 4,800 | 5,000 | ||
Lease liabilities arising from right of use assets | 2,300 | 2,900 | ||
Right of use assets terminated | 5,600 | 5,000 | $ 5,600 | |
Lease liabilities terminated | 5,900 | 5,300 | 5,900 | |
Gain on lease termination | 300 | 300 | ||
Finance leases cost included in property, plant and equipment | 31,700 | 31,700 | $ 31,700 | |
Accumulated amortization related to finance leases | 17,000 | 17,000 | 16,400 | |
Principal payments, finance lease liabilities | 443 | 249 | ||
Investing cash flows for finance lease liabilities | 900 | |||
Operating cash flows for finance lease liabilities | 100 | $ 100 | ||
Finance lease liability | 5,207 | 5,207 | $ 5,641 | |
Finance lease liability, current | $ 1,800 | $ 1,800 |
LEASES - Weighted average remai
LEASES - Weighted average remaining lease terms and discount rates (Details) | Mar. 31, 2024 | Dec. 31, 2023 |
LEASES | ||
Operating leases, weighted average remaining lease term | 12 years 10 months 24 days | 13 years 3 months 18 days |
Financing leases, weighted average remaining lease term | 9 years 2 months 12 days | 9 years 2 months 12 days |
Operating leases, weighted average discount rate | 6.60% | 6.30% |
Financing leases, weighted average discount rate | 7.20% | 6.60% |
LEASES - Maturities of lease li
LEASES - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Lessor, Lease, Description [Line Items] | |||
2024 (excluding the three months ended March 31, 2024) | $ 13,608 | ||
Year 1 | 16,800 | $ 18,048 | |
Year 2 | 12,405 | 16,022 | |
Year 3 | 9,542 | 11,755 | |
Year 4 | 7,553 | 9,327 | |
Year 5 | 7,807 | ||
Thereafter | 82,078 | ||
Thereafter | 80,637 | ||
Total lease payments | 141,986 | 143,596 | |
Less imputed interest | (56,664) | (57,133) | |
Total | $ 85,322 | $ 86,463 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Lease Liability, Current, Lease Liability, Noncurrent | Lease Liability, Current, Lease Liability, Noncurrent | |
Finance lease liability | |||
2024 (excluding the three months ended March 31, 2024) | $ 1,614 | ||
Year 1 | 1,394 | $ 2,030 | |
Year 2 | 570 | 1,488 | |
Year 3 | 534 | 601 | |
Year 4 | 505 | 534 | |
Year 5 | 505 | ||
Thereafter | 2,145 | ||
Thereafter | 2,145 | ||
Total lease payments | 6,762 | 7,303 | |
Less imputed interest | (1,555) | (1,662) | |
Total | $ 5,207 | $ 5,641 | |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | Lease Liability, Current, Lease Liability, Noncurrent | Lease Liability, Current, Lease Liability, Noncurrent | |
Lease income | $ 2,106 | $ 1,903 | |
Maturities of future undiscounted lease payments | |||
2024 (excluding the three months ended March 31, 2024) | 5,995 | ||
2025 | 7,060 | ||
2026 | 6,749 | ||
2027 | 5,559 | ||
2028 | 5,180 | ||
Thereafter | 13,353 | ||
Total future lease payments | 43,896 | ||
Network asset | |||
Finance lease liability | |||
Lease income | $ 2,100 | $ 1,900 |
FAIR VALUE MEASUREMENTS AND I_3
FAIR VALUE MEASUREMENTS AND INVESTMENTS - Recurring (Details) - Recurring basis - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair value measurements | ||
Total assets and liabilities measured at fair value | $ (19,061) | $ (21,561) |
Short Term Investments | ||
Fair value measurements | ||
Investments | 300 | 300 |
Other investments | ||
Fair value measurements | ||
Investments | 1,076 | 1,197 |
Employee benefit plan investments | ||
Fair value measurements | ||
Investments | 2,991 | 3,014 |
Redeemable common units | Alloy Inc | ||
Fair value measurements | ||
Financial instruments | (14,760) | (14,760) |
Redeemable common units | Alaska communications | ||
Fair value measurements | ||
Financial instruments | (8,419) | (11,063) |
Warrants | Alaska communications | ||
Fair value measurements | ||
Financial instruments | (249) | (249) |
Level 1 | ||
Fair value measurements | ||
Total assets and liabilities measured at fair value | 3,291 | 3,314 |
Level 1 | Short Term Investments | ||
Fair value measurements | ||
Investments | 300 | 300 |
Level 1 | Employee benefit plan investments | ||
Fair value measurements | ||
Investments | 2,991 | 3,014 |
Level 3 | ||
Fair value measurements | ||
Total assets and liabilities measured at fair value | (22,352) | (24,875) |
Level 3 | Other investments | ||
Fair value measurements | ||
Investments | 1,076 | 1,197 |
Level 3 | Redeemable common units | Alloy Inc | ||
Fair value measurements | ||
Financial instruments | (14,760) | (14,760) |
Level 3 | Redeemable common units | Alaska communications | ||
Fair value measurements | ||
Financial instruments | (8,419) | (11,063) |
Level 3 | Warrants | Alaska communications | ||
Fair value measurements | ||
Financial instruments | $ (249) | $ (249) |
FAIR VALUE MEASUREMENTS AND I_4
FAIR VALUE MEASUREMENTS AND INVESTMENTS - Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Roll forward of investments | ||
Beginning balance | $ 42,907 | $ 38,169 |
Income recognized | 19 | 315 |
Contributions / (distributions) | (140) | 630 |
Foreign currency loss | 111 | |
Ending balance | 42,786 | 39,225 |
Investments without a readily determinable fair value | ||
Roll forward of investments | ||
Beginning balance | 41,710 | 22,590 |
Ending balance | 41,710 | 22,590 |
Fair value investments | ||
Roll forward of investments | ||
Beginning balance | 1,197 | 1,616 |
Income recognized | 19 | 77 |
Contributions / (distributions) | (140) | |
Ending balance | $ 1,076 | 1,693 |
Equity method investments | ||
Roll forward of investments | ||
Beginning balance | 13,963 | |
Income recognized | 238 | |
Contributions / (distributions) | 630 | |
Foreign currency loss | 111 | |
Ending balance | $ 14,942 |
FAIR VALUE MEASUREMENTS AND I_5
FAIR VALUE MEASUREMENTS AND INVESTMENTS - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Equity investments | ||
Fair value measurements | ||
Equity method investments without a readily determinable fair value transferred to the cost method | $ 16.3 | |
Carrying Value | ||
Fair value measurements | ||
Long-term debt | $ 589.3 | 562.9 |
Level 2 | Total | ||
Fair value measurements | ||
Long-term debt | $ 597.4 | $ 571.6 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) | 1 Months Ended | 3 Months Ended | ||||||||||||||
Jul. 13, 2023 USD ($) | Dec. 23, 2022 USD ($) | Jun. 15, 2022 USD ($) | Jul. 22, 2021 USD ($) | Apr. 10, 2019 USD ($) | Oct. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Nov. 30, 2023 USD ($) derivative | Nov. 07, 2022 USD ($) | Oct. 12, 2022 USD ($) | May 05, 2022 | Mar. 26, 2020 USD ($) | Dec. 31, 2016 USD ($) | Jul. 01, 2016 USD ($) | |
Long-term debt | ||||||||||||||||
Revolving credit facility - borrowings | $ 46,000,000 | $ 57,553,000 | ||||||||||||||
Outstanding borrowings | 541,291,000 | $ 516,870,000 | ||||||||||||||
Current portion of long-term debt | 20,476,000 | 24,290,000 | ||||||||||||||
Long-term debt, excluding current portion | 520,815,000 | 492,580,000 | ||||||||||||||
Current portion of customer receivable credit facility | 7,569,000 | $ 7,110,000 | ||||||||||||||
Alaska communications | Interest rate swap | Designated as cash flow hedges | ||||||||||||||||
Long-term debt | ||||||||||||||||
Interest rate (in percent) | 1.6735% | |||||||||||||||
Alaska credit facility | Period of second quarter of 2024 | ||||||||||||||||
Long-term debt | ||||||||||||||||
Net total leverage ratio | 3.75 | |||||||||||||||
Alaska credit facility | Interest rate swap | ||||||||||||||||
Long-term debt | ||||||||||||||||
Number of derivative instruments | derivative | 2 | |||||||||||||||
Alaska credit facility | Alaska communications | ||||||||||||||||
Long-term debt | ||||||||||||||||
Financing costs | 7,300,000 | |||||||||||||||
Unamortized financing costs | $ 3,500,000 | |||||||||||||||
Consolidated EBITDA | 12 months | |||||||||||||||
Net total leverage ratio | 4 | |||||||||||||||
Fixed charge coverage ratio | 1.25 | |||||||||||||||
Alaska credit facility | Alaska communications | Period of fourth quarter of 2023 To third quarter 2024 | ||||||||||||||||
Long-term debt | ||||||||||||||||
Periodic payment, principal | $ 1,400,000 | |||||||||||||||
Alaska credit facility | Alaska communications | Debt Instrument, From Fourth Quarter of 2024 To Third Quarter of 2026 | ||||||||||||||||
Long-term debt | ||||||||||||||||
Periodic payment, principal | $ 2,900,000 | |||||||||||||||
Alaska credit facility | SOFR | ||||||||||||||||
Long-term debt | ||||||||||||||||
Basis spread on variable rate (as a percent) | 0.10% | |||||||||||||||
Alaska credit facility | SOFR | Interest rate swap | ||||||||||||||||
Long-term debt | ||||||||||||||||
Notional amount | $ 200,000,000 | |||||||||||||||
Alaska credit facility | SOFR | Interest rate swap One | ||||||||||||||||
Long-term debt | ||||||||||||||||
Interest rate (in percent) | 4.8695% | |||||||||||||||
Alaska credit facility | SOFR | Interest rate swap Two | ||||||||||||||||
Long-term debt | ||||||||||||||||
Interest rate (in percent) | 4.898% | |||||||||||||||
Alaska credit facility | SOFR | Alaska communications | ||||||||||||||||
Long-term debt | ||||||||||||||||
Basis spread on variable rate (as a percent) | 0.10% | |||||||||||||||
Alaska credit facility | Base rate | Alaska communications | ||||||||||||||||
Long-term debt | ||||||||||||||||
Basis spread on variable rate (as a percent) | 1% | |||||||||||||||
Alaska credit facility | Minimum | SOFR | Alaska communications | ||||||||||||||||
Long-term debt | ||||||||||||||||
Basis spread on variable rate (as a percent) | 3% | |||||||||||||||
Alaska credit facility | Maximum | SOFR | Alaska communications | ||||||||||||||||
Long-term debt | ||||||||||||||||
Basis spread on variable rate (as a percent) | 4% | |||||||||||||||
GTT Credit Facility | ||||||||||||||||
Long-term debt | ||||||||||||||||
Term of debt | 5 years | |||||||||||||||
Borrowings outstanding | $ 0 | |||||||||||||||
Fixed interest rate | 7.50% | |||||||||||||||
GTT Term Loan Facility | ||||||||||||||||
Long-term debt | ||||||||||||||||
Maximum borrowing capacity | $ 2,900,000 | |||||||||||||||
GTT Overdraft Facility | ||||||||||||||||
Long-term debt | ||||||||||||||||
Maximum borrowing capacity | $ 5,700,000 | |||||||||||||||
Viya Debt | ||||||||||||||||
Long-term debt | ||||||||||||||||
Net leverage ratio | 7 | 3.5 | ||||||||||||||
Financing costs | $ 900,000 | |||||||||||||||
Unamortized financing costs | $ 200,000 | |||||||||||||||
Term loan assumed | $ 60,000,000 | |||||||||||||||
Fixed interest rate | 4% | 4% | ||||||||||||||
Outstanding debt | 60,000,000 | |||||||||||||||
Revolver loan | 2019 CoBank Credit Facility | ||||||||||||||||
Long-term debt | ||||||||||||||||
Maximum borrowing capacity | $ 200,000,000 | |||||||||||||||
Repayments of debt | $ 139,500,000 | |||||||||||||||
Revolver loan | 2019 CoBank Credit Facility | Minimum | ||||||||||||||||
Long-term debt | ||||||||||||||||
Commitment fee (as a percent) | 0.15% | |||||||||||||||
Revolver loan | 2019 CoBank Credit Facility | Minimum | Base rate | ||||||||||||||||
Long-term debt | ||||||||||||||||
Basis spread on variable rate (as a percent) | 0.25% | |||||||||||||||
Revolver loan | 2019 CoBank Credit Facility | Minimum | LIBOR | ||||||||||||||||
Long-term debt | ||||||||||||||||
Basis spread on variable rate (as a percent) | 1.25% | |||||||||||||||
Revolver loan | 2019 CoBank Credit Facility | Maximum | ||||||||||||||||
Long-term debt | ||||||||||||||||
Commitment fee (as a percent) | 0.375% | |||||||||||||||
Revolver loan | 2019 CoBank Credit Facility | Maximum | Base rate | ||||||||||||||||
Long-term debt | ||||||||||||||||
Basis spread on variable rate (as a percent) | 1.25% | |||||||||||||||
Revolver loan | 2019 CoBank Credit Facility | Maximum | LIBOR | ||||||||||||||||
Long-term debt | ||||||||||||||||
Basis spread on variable rate (as a percent) | 2.25% | |||||||||||||||
Revolver loan | Alaska credit facility | Alaska communications | ||||||||||||||||
Long-term debt | ||||||||||||||||
Maximum borrowing capacity | $ 75,000,000 | $ 35,000,000 | ||||||||||||||
Revolving credit facility - borrowings | 40,000,000 | |||||||||||||||
Borrowings outstanding | 227,100,000 | |||||||||||||||
Remaining borrowing capacity | 35,000,000 | |||||||||||||||
Letter of credit sub-facility | ||||||||||||||||
Long-term debt | ||||||||||||||||
Borrowings outstanding | 32,400,000 | |||||||||||||||
Letter of credit sub-facility | 2023 CoBank Credit Facility | ||||||||||||||||
Long-term debt | ||||||||||||||||
Maximum borrowing capacity | 25,000,000 | |||||||||||||||
Letter of credit sub-facility | 2019 CoBank Credit Facility | ||||||||||||||||
Long-term debt | ||||||||||||||||
Maximum borrowing capacity | $ 75,000,000 | |||||||||||||||
Swingline sub-facility | 2023 CoBank Credit Facility | ||||||||||||||||
Long-term debt | ||||||||||||||||
Maximum borrowing capacity | $ 20,000,000 | |||||||||||||||
Base rate before one-week or one-month LIBOR (as a percent) | 1% | |||||||||||||||
Swingline sub-facility | 2023 CoBank Credit Facility | Federal Funds Effective Rate | ||||||||||||||||
Long-term debt | ||||||||||||||||
Basis spread on variable rate (as a percent) | 0.50% | |||||||||||||||
Swingline sub-facility | 2019 CoBank Credit Facility | ||||||||||||||||
Long-term debt | ||||||||||||||||
Maximum borrowing capacity | $ 10,000,000 | |||||||||||||||
Base rate before one-week or one-month LIBOR (as a percent) | 1% | |||||||||||||||
Swingline sub-facility | 2019 CoBank Credit Facility | Federal Funds Effective Rate | ||||||||||||||||
Long-term debt | ||||||||||||||||
Basis spread on variable rate (as a percent) | 0.50% | |||||||||||||||
Term loans | Alaska credit facility | Alaska communications | ||||||||||||||||
Long-term debt | ||||||||||||||||
Outstanding borrowings | $ 230,000,000 | 210,000,000 | ||||||||||||||
2023 CoBank Credit Facility | ||||||||||||||||
Long-term debt | ||||||||||||||||
Financing costs | 4,200,000 | |||||||||||||||
Unamortized financing costs | 3,700,000 | |||||||||||||||
2023 CoBank Credit Facility | 2023 CoBank Credit Facility | Interest rate swap | ||||||||||||||||
Long-term debt | ||||||||||||||||
Derivative, Term of debt | 2 years | |||||||||||||||
Notional amount | $ 50,000,000 | |||||||||||||||
2023 CoBank Credit Facility | 2023 CoBank Credit Facility | SOFR | Interest rate swap | ||||||||||||||||
Long-term debt | ||||||||||||||||
Interest rate (in percent) | 4.896% | |||||||||||||||
2023 CoBank Credit Facility | 2023 CoBank Credit Facility | Minimum | ||||||||||||||||
Long-term debt | ||||||||||||||||
Commitment fee (as a percent) | 0.25% | |||||||||||||||
2023 CoBank Credit Facility | 2023 CoBank Credit Facility | Maximum | ||||||||||||||||
Long-term debt | ||||||||||||||||
Commitment fee (as a percent) | 0.50% | |||||||||||||||
2023 CoBank Revolving Loan | 2023 CoBank Credit Facility | ||||||||||||||||
Long-term debt | ||||||||||||||||
Term of debt | 5 years | |||||||||||||||
Maximum borrowing capacity | $ 170,000,000 | |||||||||||||||
Revolving credit facility - borrowings | $ 13,600,000 | |||||||||||||||
Borrowings outstanding | 60,800,000 | |||||||||||||||
Remaining borrowing capacity | 109,200,000 | |||||||||||||||
2023 CoBank Revolving Loan | 2023 CoBank Credit Facility | Minimum | SOFR | ||||||||||||||||
Long-term debt | ||||||||||||||||
Basis spread on variable rate (as a percent) | 1.75% | |||||||||||||||
2023 CoBank Revolving Loan | 2023 CoBank Credit Facility | Minimum | Base rate | ||||||||||||||||
Long-term debt | ||||||||||||||||
Basis spread on variable rate (as a percent) | 0.75% | |||||||||||||||
2023 CoBank Revolving Loan | 2023 CoBank Credit Facility | Maximum | ||||||||||||||||
Long-term debt | ||||||||||||||||
Net leverage ratio | 3.25 | |||||||||||||||
2023 CoBank Revolving Loan | 2023 CoBank Credit Facility | Maximum | SOFR | ||||||||||||||||
Long-term debt | ||||||||||||||||
Basis spread on variable rate (as a percent) | 3.50% | |||||||||||||||
2023 CoBank Revolving Loan | 2023 CoBank Credit Facility | Maximum | Base rate | ||||||||||||||||
Long-term debt | ||||||||||||||||
Basis spread on variable rate (as a percent) | 2.50% | |||||||||||||||
2023 CoBank Term Loan | 2023 CoBank Credit Facility | ||||||||||||||||
Long-term debt | ||||||||||||||||
Term of debt | 6 years | |||||||||||||||
Face amount of debt | $ 130,000,000 | |||||||||||||||
Borrowings outstanding | 128,400,000 | |||||||||||||||
2023 CoBank Term Loan | 2023 CoBank Credit Facility | Minimum | SOFR | ||||||||||||||||
Long-term debt | ||||||||||||||||
Basis spread on variable rate (as a percent) | 2% | |||||||||||||||
2023 CoBank Term Loan | 2023 CoBank Credit Facility | Minimum | Base rate | ||||||||||||||||
Long-term debt | ||||||||||||||||
Basis spread on variable rate (as a percent) | 1% | |||||||||||||||
2023 CoBank Term Loan | 2023 CoBank Credit Facility | Maximum | SOFR | ||||||||||||||||
Long-term debt | ||||||||||||||||
Basis spread on variable rate (as a percent) | 3.75% | |||||||||||||||
2023 CoBank Term Loan | 2023 CoBank Credit Facility | Maximum | Base rate | ||||||||||||||||
Long-term debt | ||||||||||||||||
Basis spread on variable rate (as a percent) | 2.75% | |||||||||||||||
Incremental term loans | Alaska credit facility | Minimum | Alaska communications | ||||||||||||||||
Long-term debt | ||||||||||||||||
Maximum borrowing capacity | $ 70,000,000 | |||||||||||||||
Secured delayed draw term loan | Alaska Term Facility | Alaska communications | ||||||||||||||||
Long-term debt | ||||||||||||||||
Remaining borrowing capacity | 0 | |||||||||||||||
Outstanding borrowings | 5,300,000 | |||||||||||||||
Fixed charge coverage ratio | 4 | |||||||||||||||
Maximum borrowing capacity | $ 7,500,000 | |||||||||||||||
Senior secured delayed draw term loan | Receivable credit facility | ||||||||||||||||
Long-term debt | ||||||||||||||||
Maximum borrowing capacity | $ 75,000,000 | |||||||||||||||
Financing costs | $ 800,000 | |||||||||||||||
Unamortized financing costs | 500,000 | |||||||||||||||
Borrowings outstanding | 48,400,000 | |||||||||||||||
Remaining borrowing capacity | 11,300,000 | |||||||||||||||
Current portion of customer receivable credit facility | 7,600,000 | |||||||||||||||
Senior secured delayed draw term loan | Sacred Wind Term Debt | ||||||||||||||||
Long-term debt | ||||||||||||||||
Outstanding borrowings | 27,400,000 | $ 31,600,000 | ||||||||||||||
Current portion of long-term debt | 3,300,000 | |||||||||||||||
Long-term debt, excluding current portion | $ 24,100,000 | |||||||||||||||
Senior secured delayed draw term loan | Sacred Wind Term Debt | Minimum | ||||||||||||||||
Long-term debt | ||||||||||||||||
Fixed interest rate | 0.88% | |||||||||||||||
Senior secured delayed draw term loan | Sacred Wind Term Debt | Maximum | ||||||||||||||||
Long-term debt | ||||||||||||||||
Fixed interest rate | 5% |
LONG-TERM DEBT - Quarterly Paym
LONG-TERM DEBT - Quarterly Payments Dates (Details) - 2023 CoBank Term Loan - 2023 CoBank Credit Facility | Jul. 13, 2023 USD ($) |
Quarterly Payment, December 31, 2023 - June 30, 2025 | |
Debt Instrument [Line Items] | |
Quarterly repayments | $ 812,500 |
Interest rate | 2.50% |
Quarterly Payment, September 30, 2025 - June 30, 2026 | |
Debt Instrument [Line Items] | |
Quarterly repayments | $ 1,625,000 |
Interest rate | 5% |
Quarterly Payment, September 30, 2026 - June 30,2029 | |
Debt Instrument [Line Items] | |
Quarterly repayments | $ 2,437,500 |
Interest rate | 7.50% |
LONG-TERM DEBT - Debt Maturity
LONG-TERM DEBT - Debt Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Book Value | $ 541,291 | $ 516,870 |
Total Debt | ||
Debt Instrument [Line Items] | ||
April 1, 2024 through December 31, 2024 | 15,987 | |
Year ending December 31, 2025 | 19,844 | |
Year ending December 31, 2026 | 321,594 | |
Year ending December 31, 2027 | 13,473 | |
Year ending December 31, 2028 | 13,608 | |
Thereafter | 164,449 | |
Total | 548,955 | |
Debt Discounts | (7,664) | |
Book Value | 541,291 | |
Customer receivable credit facility | ||
Debt Instrument [Line Items] | ||
April 1, 2024 through December 31, 2024 | 5,644 | |
Year ending December 31, 2025 | 7,830 | |
Year ending December 31, 2026 | 8,192 | |
Year ending December 31, 2027 | 8,572 | |
Year ending December 31, 2028 | 8,973 | |
Thereafter | 9,221 | |
Total | 48,432 | |
Debt Discounts | (455) | |
Book Value | 47,977 | |
Corporate and Other | ||
Debt Instrument [Line Items] | ||
April 1, 2024 through December 31, 2024 | 2,438 | |
Year ending December 31, 2025 | 4,875 | |
Year ending December 31, 2026 | 8,125 | |
Year ending December 31, 2027 | 9,750 | |
Year ending December 31, 2028 | 9,750 | |
Thereafter | 154,257 | |
Total | 189,195 | |
Debt Discounts | (3,676) | |
Book Value | 185,519 | 159,009 |
US Telecom | Operating segments | ||
Debt Instrument [Line Items] | ||
Book Value | 295,996 | 293,607 |
US Telecom | Operating segments | Total Debt | ||
Debt Instrument [Line Items] | ||
April 1, 2024 through December 31, 2024 | 13,549 | |
Year ending December 31, 2025 | 14,969 | |
Year ending December 31, 2026 | 253,469 | |
Year ending December 31, 2027 | 3,723 | |
Year ending December 31, 2028 | 3,858 | |
Thereafter | 10,192 | |
Total | 299,760 | |
Debt Discounts | (3,764) | |
Book Value | 295,996 | |
International Telecom | Operating segments | ||
Debt Instrument [Line Items] | ||
Book Value | 59,776 | $ 64,254 |
International Telecom | Operating segments | Total Debt | ||
Debt Instrument [Line Items] | ||
Year ending December 31, 2026 | 60,000 | |
Total | 60,000 | |
Debt Discounts | (224) | |
Book Value | $ 59,776 |
GOVERNMENT SUPPORT AND SPECTR_3
GOVERNMENT SUPPORT AND SPECTRUM MATTERS (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) item | Mar. 31, 2023 USD ($) | Jul. 15, 2022 USD ($) | |
Mobility Fund [Line Items] | |||
Revenue from contract with customer | $ 172,908 | $ 172,557 | |
Reimbursable capital expenditures | 13,473 | 2,127 | |
Amounts accrued for reimbursable capital expenditures from government capital programs | 33,446 | 1,435 | |
Government capital programs - Amounts received | 10,546 | 593 | |
Payment for PALs | 573 | ||
USF, CAF II, RDOF, EOF, RHC and Other Programs | Communication services | |||
Mobility Fund [Line Items] | |||
Revenue from contract with customer | 29,046 | 26,978 | |
USF, CAF II, RDOF, EOF, RHC and Other Programs | US Telecom | Communication services | |||
Mobility Fund [Line Items] | |||
Revenue from contract with customer | 27,338 | 25,577 | |
USF, CAF II, RDOF, EOF, RHC and Other Programs | International Telecom | Communication services | |||
Mobility Fund [Line Items] | |||
Revenue from contract with customer | $ 1,708 | 1,401 | |
Universal Service Fund programs | |||
Mobility Fund [Line Items] | |||
Number Of Fund Disbursement Programs | item | 4 | ||
High cost support program | Communication services | |||
Mobility Fund [Line Items] | |||
Revenue from contract with customer | $ 4,848 | 3,891 | |
High cost support program | US Telecom | Communication services | |||
Mobility Fund [Line Items] | |||
Revenue from contract with customer | 3,455 | 2,494 | |
High cost support program | International Telecom | Communication services | |||
Mobility Fund [Line Items] | |||
Revenue from contract with customer | 1,393 | 1,397 | |
Government capital programs - Amounts received | 5,500 | ||
CAF II | Grant receivable through December 2025 | |||
Mobility Fund [Line Items] | |||
Amount that has been funded or will be funded | 27,700 | ||
CAF II | Grant receivable from January 2026 through July 2028 | |||
Mobility Fund [Line Items] | |||
Amount that has been funded or will be funded | 8,000 | ||
CAF II | Communication services | |||
Mobility Fund [Line Items] | |||
Revenue from contract with customer | 6,787 | 6,815 | |
CAF II | US Telecom | Communication services | |||
Mobility Fund [Line Items] | |||
Revenue from contract with customer | 6,787 | 6,815 | |
TBCP and Reconnect | |||
Mobility Fund [Line Items] | |||
Grant funds awarded during the period | 192,600 | ||
Government capital programs - Amounts received | 10,400 | ||
Construction Obligation | 10,100 | ||
RDOF | |||
Mobility Fund [Line Items] | |||
Grant Funds Expected To Be Awarded | $ 22,700 | ||
Grant Fund Term | 10 years | ||
Number Of Households To Receive Broadband Coverage | item | 10,000 | ||
RDOF | Communication services | |||
Mobility Fund [Line Items] | |||
Revenue from contract with customer | $ 145 | 608 | |
RDOF | US Telecom | Communication services | |||
Mobility Fund [Line Items] | |||
Revenue from contract with customer | 145 | 608 | |
ECF | Communication services | |||
Mobility Fund [Line Items] | |||
Revenue from contract with customer | 6,813 | 8,067 | |
ECF | US Telecom | Communication services | |||
Mobility Fund [Line Items] | |||
Revenue from contract with customer | 6,813 | 8,067 | |
RHC | Communication services | |||
Mobility Fund [Line Items] | |||
Revenue from contract with customer | 3,437 | 2,900 | |
RHC | US Telecom | Communication services | |||
Mobility Fund [Line Items] | |||
Revenue from contract with customer | 3,437 | 2,900 | |
Other Programs | Communication services | |||
Mobility Fund [Line Items] | |||
Revenue from contract with customer | 7,016 | 4,697 | |
Other Programs | US Telecom | Communication services | |||
Mobility Fund [Line Items] | |||
Revenue from contract with customer | 6,701 | 4,693 | |
Other Programs | International Telecom | Communication services | |||
Mobility Fund [Line Items] | |||
Revenue from contract with customer | $ 315 | 4 | |
Remove And Replace Program | |||
Mobility Fund [Line Items] | |||
Reimbursement period | 12 months | ||
Receivable for costs expected to be reimbursed | $ 49,134 | $ 6,710 | |
Amounts accrued for reimbursable capital expenditures from government capital programs | 33,400 | ||
Remove And Replace Program | Maximum | |||
Mobility Fund [Line Items] | |||
Amount of cost reimbursement allocated | $ 207,000 | ||
Network Connectivity for Eligible Communities | |||
Mobility Fund [Line Items] | |||
Reimbursable capital expenditures | 3,400 | ||
Government capital programs - Amounts received | $ 1,900 |
GOVERNMENT SUPPORT AND SPECTR_4
GOVERNMENT SUPPORT AND SPECTRUM MATTERS - Construction (Details) - Network Connectivity for Eligible Communities $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Mobility Fund [Line Items] | |
Grants awarded | $ 100,149 |
Grants awarded | $ 100,149 |
GOVERNMENT SUPPORT AND SPECTR_5
GOVERNMENT SUPPORT AND SPECTRUM MATTERS - Replace and Remove Program (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Remove And Replace Program | ||
Mobility Fund [Line Items] | ||
Beginning balance, Total spend | $ 64,388 | $ 3,325 |
Amounts spent | 16,302 | 3,385 |
Ending balance, Total spend | 80,690 | 6,710 |
Beginning balance, Total reimbursements | (17,127) | |
Reimbursements received | (14,429) | |
Ending balance, Total reimbursements | (31,556) | |
Amount pending reimbursement | 49,134 | 6,710 |
Capital Amount | ||
Mobility Fund [Line Items] | ||
Beginning balance, Total spend | 49,262 | 1,836 |
Amounts spent | 11,734 | 1,485 |
Ending balance, Total spend | 60,996 | 3,321 |
Beginning balance, Total reimbursements | (12,773) | |
Reimbursements received | (8,586) | |
Ending balance, Total reimbursements | (21,359) | |
Amount pending reimbursement | 39,637 | 3,321 |
Operating Amount | ||
Mobility Fund [Line Items] | ||
Beginning balance, Total spend | 15,126 | 1,489 |
Amounts spent | 4,568 | 1,900 |
Ending balance, Total spend | 19,694 | 3,389 |
Beginning balance, Total reimbursements | (4,354) | |
Reimbursements received | (5,843) | |
Ending balance, Total reimbursements | (10,197) | |
Amount pending reimbursement | $ 9,497 | $ 3,389 |
RETIREMENT PLANS - Net Periodic
RETIREMENT PLANS - Net Periodic Pension Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Components of the plan's net periodic pension cost | ||
Settlements | $ 369 | |
Pension benefits | ||
Components of the plan's net periodic pension cost | ||
Service cost | $ 22 | 38 |
Interest cost | 824 | 593 |
Expected return on plan assets | (729) | (953) |
Amortization of unrecognized actuarial gain | (11) | |
Settlements | 369 | |
Net periodic pension expense (benefit) | 106 | 47 |
Postretirement benefits | ||
Components of the plan's net periodic pension cost | ||
Service cost | 16 | 31 |
Interest cost | 45 | 35 |
Amortization of unrecognized actuarial gain | (28) | |
Net periodic pension expense (benefit) | $ 33 | $ 66 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
INCOME TAXES | ||
Effective tax rate (as a percent) | (25.60%) | 9.50% |
Income tax expense | $ 1,619 | $ (740) |
Pre-tax loss | 6,329 | 7,795 |
Expense for an uncertain tax position for the current year | 1,500 | |
Expense for interest on uncertain tax positions | $ 700 | $ 600 |
EARNINGS PER SHARE AND REDEEM_3
EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS - Computation (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net loss attributable to ATN International, Inc. stockholders- Basic | $ (6,315) | $ (5,885) |
Less: Preferred dividends | (1,348) | (1,045) |
Net Loss attributable to ATN International, Inc. common stockholders- Diluted | $ (7,663) | $ (6,930) |
Denominator: | ||
Weighted-average shares outstanding- Basic | 15,437 | 15,768 |
Weighted-average shares outstanding- Diluted | 15,437 | 15,768 |
EARNINGS PER SHARE AND REDEEM_4
EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS - Redeemable Noncontrolling Interests Narrative (Details) - Redeemable Common Units [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reconciliation from basic to diluted weighted average common shares outstanding | ||
Allocated losses | $ 3.5 | $ 2.8 |
Increase in book value | $ 0.9 | $ 2.5 |
EARNINGS PER SHARE AND REDEEM_5
EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS - Redeemable Noncontrolling Interests Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Increase (decrease) in temporary equity | ||
Beginning balance | $ 85,917 | $ 92,469 |
Accrued preferred dividend | 1,348 | 1,045 |
Allocated net loss | (3,512) | (2,821) |
Change in fair value | 868 | 2,530 |
Ending balance | 84,621 | 93,223 |
Redeemable common units | ||
Increase (decrease) in temporary equity | ||
Beginning balance | 25,823 | 37,317 |
Allocated net loss | (3,512) | (2,821) |
Change in fair value | 868 | 2,530 |
Ending balance | 23,179 | 37,026 |
Redeemable preferred units | ||
Increase (decrease) in temporary equity | ||
Beginning balance | 60,094 | 55,152 |
Accrued preferred dividend | 1,348 | 1,045 |
Ending balance | $ 61,442 | $ 56,197 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Segment reporting | ||||
Number of reportable segments | segment | 2 | |||
Number of operating segments | segment | 2 | |||
Revenue | ||||
Revenue | $ 186,794 | $ 185,774 | ||
Depreciation | 34,340 | 36,404 | ||
Amortization of intangibles from acquisitions | 1,980 | 3,247 | ||
Non-cash stock-based compensation | 1,909 | 1,778 | ||
Operating income (loss) | 4,574 | 636 | ||
Segment Assets | ||||
Cash, cash equivalents, and restricted cash | 69,218 | 60,977 | $ 62,167 | $ 59,728 |
Total current assets | 289,727 | 281,272 | ||
Fixed Assets, net | 1,071,482 | 1,080,659 | ||
Goodwill | 40,104 | 40,104 | ||
Total assets | 1,779,154 | 1,783,714 | ||
Total current liabilities | 273,617 | 293,194 | ||
Total debt, including current portion | 541,291 | 516,870 | ||
Capital Expenditures | ||||
Capital expenditures | 49,489 | 52,725 | ||
Reimbursable Capital Expenditures | 13,473 | 2,127 | ||
Communication services | ||||
Revenue | ||||
Revenue | 181,268 | 181,308 | ||
Mobility | ||||
Revenue | ||||
Revenue | 26,875 | 27,266 | ||
Mobility - Business | ||||
Revenue | ||||
Revenue | 4,882 | 3,747 | ||
Mobility - Consumer | ||||
Revenue | ||||
Revenue | 21,993 | 23,519 | ||
Fixed | ||||
Revenue | ||||
Revenue | 119,205 | 117,793 | ||
Fixed - Business | ||||
Revenue | ||||
Revenue | 53,497 | 53,433 | ||
Fixed - Consumer | ||||
Revenue | ||||
Revenue | 65,708 | 64,360 | ||
Carrier services | ||||
Revenue | ||||
Revenue | 33,626 | 35,774 | ||
Other communication services | ||||
Revenue | ||||
Revenue | 1,562 | 475 | ||
Construction. | ||||
Revenue | ||||
Revenue | 1,586 | 590 | ||
Other revenue | ||||
Revenue | ||||
Revenue | 3,940 | 3,876 | ||
Managed Services | ||||
Revenue | ||||
Revenue | 3,940 | 3,876 | ||
Corporate and Other | ||||
Revenue | ||||
Depreciation | 78 | 731 | ||
Non-cash stock-based compensation | 1,754 | 1,634 | ||
Operating income (loss) | (7,708) | (8,847) | ||
Segment Assets | ||||
Cash, cash equivalents, and restricted cash | 1,561 | 2,239 | ||
Total current assets | 11,147 | 11,035 | ||
Fixed Assets, net | 6,178 | 4,915 | ||
Total assets | 92,603 | 91,619 | ||
Total current liabilities | 30,357 | 37,357 | ||
Total debt, including current portion | 185,519 | 159,009 | ||
Capital Expenditures | ||||
Capital expenditures | 1,341 | |||
International Telecom | Operating segments | ||||
Revenue | ||||
Revenue | 93,059 | 90,408 | ||
Depreciation | 16,124 | 14,186 | ||
Amortization of intangibles from acquisitions | 251 | 380 | ||
Non-cash stock-based compensation | 23 | 67 | ||
Operating income (loss) | 11,685 | 13,825 | ||
Segment Assets | ||||
Cash, cash equivalents, and restricted cash | 35,369 | 26,354 | ||
Total current assets | 121,262 | 107,469 | ||
Fixed Assets, net | 479,325 | 481,911 | ||
Goodwill | 4,835 | 4,836 | ||
Total assets | 679,591 | 672,171 | ||
Total current liabilities | 87,986 | 86,540 | ||
Total debt, including current portion | 59,776 | 64,254 | ||
Capital Expenditures | ||||
Capital expenditures | 16,915 | 21,464 | ||
International Telecom | Operating segments | Communication services | ||||
Revenue | ||||
Revenue | 91,750 | 89,088 | ||
International Telecom | Operating segments | Mobility | ||||
Revenue | ||||
Revenue | 26,037 | 26,107 | ||
International Telecom | Operating segments | Mobility - Business | ||||
Revenue | ||||
Revenue | 4,808 | 3,575 | ||
International Telecom | Operating segments | Mobility - Consumer | ||||
Revenue | ||||
Revenue | 21,229 | 22,532 | ||
International Telecom | Operating segments | Fixed | ||||
Revenue | ||||
Revenue | 61,321 | 58,891 | ||
International Telecom | Operating segments | Fixed - Business | ||||
Revenue | ||||
Revenue | 18,532 | 17,113 | ||
International Telecom | Operating segments | Fixed - Consumer | ||||
Revenue | ||||
Revenue | 42,789 | 41,778 | ||
International Telecom | Operating segments | Carrier services | ||||
Revenue | ||||
Revenue | 3,574 | 3,690 | ||
International Telecom | Operating segments | Other communication services | ||||
Revenue | ||||
Revenue | 818 | 400 | ||
International Telecom | Operating segments | Other revenue | ||||
Revenue | ||||
Revenue | 1,309 | 1,320 | ||
International Telecom | Operating segments | Managed Services | ||||
Revenue | ||||
Revenue | 1,309 | 1,320 | ||
US Telecom | Operating segments | ||||
Revenue | ||||
Revenue | 93,735 | 95,366 | ||
Depreciation | 18,138 | 21,487 | ||
Amortization of intangibles from acquisitions | 1,729 | 2,867 | ||
Non-cash stock-based compensation | 132 | 77 | ||
Operating income (loss) | 597 | (4,342) | ||
Segment Assets | ||||
Cash, cash equivalents, and restricted cash | 32,288 | 33,574 | ||
Total current assets | 157,318 | 162,768 | ||
Fixed Assets, net | 585,979 | 593,833 | ||
Goodwill | 35,269 | 35,268 | ||
Total assets | 1,006,960 | 1,019,924 | ||
Total current liabilities | 155,274 | 169,297 | ||
Total debt, including current portion | 295,996 | $ 293,607 | ||
Capital Expenditures | ||||
Capital expenditures | 31,233 | 31,261 | ||
US Telecom | Operating segments | Communication services | ||||
Revenue | ||||
Revenue | 89,518 | 92,220 | ||
US Telecom | Operating segments | Mobility | ||||
Revenue | ||||
Revenue | 838 | 1,159 | ||
US Telecom | Operating segments | Mobility - Business | ||||
Revenue | ||||
Revenue | 74 | 172 | ||
US Telecom | Operating segments | Mobility - Consumer | ||||
Revenue | ||||
Revenue | 764 | 987 | ||
US Telecom | Operating segments | Fixed | ||||
Revenue | ||||
Revenue | 57,884 | 58,902 | ||
US Telecom | Operating segments | Fixed - Business | ||||
Revenue | ||||
Revenue | 34,965 | 36,320 | ||
US Telecom | Operating segments | Fixed - Consumer | ||||
Revenue | ||||
Revenue | 22,919 | 22,582 | ||
US Telecom | Operating segments | Carrier services | ||||
Revenue | ||||
Revenue | 30,052 | 32,084 | ||
US Telecom | Operating segments | Other communication services | ||||
Revenue | ||||
Revenue | 744 | 75 | ||
US Telecom | Operating segments | Construction. | ||||
Revenue | ||||
Revenue | 1,586 | 590 | ||
US Telecom | Operating segments | Other revenue | ||||
Revenue | ||||
Revenue | 2,631 | 2,556 | ||
US Telecom | Operating segments | Managed Services | ||||
Revenue | ||||
Revenue | $ 2,631 | $ 2,556 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | May 08, 2024 | Mar. 31, 2024 |
Consent Decree with the FCC Enforcement Bureau | Subsequent event | ||
Commitments and contingencies | ||
Settlement, amount | $ 6.3 | |
Consent Decree with the FCC Enforcement Bureau | Universal Service Administrative Company | Subsequent event | ||
Commitments and contingencies | ||
Term of compliance agreement | 3 years | |
Pending litigation, adverse outcome | ||
Commitments and contingencies | ||
Accrued contingent liability | $ 17 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent event - Consent Decree with the FCC Enforcement Bureau $ in Millions | May 08, 2024 USD ($) |
SUBSEQUENT EVENT | |
Settlement, amount | $ 6.3 |
Cash payment | 5.3 |
Amount of forgiveness on receivables for settlement | $ 1 |
Universal Service Administrative Company | |
SUBSEQUENT EVENT | |
Term of compliance agreement | 3 years |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |